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“CELEBRITY ENDORSEMENT AFFECTING CONSUMER’S ATTITUDE TOWARD THE
ADVERTISEMENT AND PURCHASE INTENTION”
DISSERTATION
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
MARSTER IN
BUSINESS ADMINISTRATION
SUBMITTED BY
BHANU PRATAP SINGH
(107/MBA/105054)
UNDER THE SUPERVISION OF
DR. Srabanti Mukherjee
DEPARTMENT OF MBA DAY
Indian Institute of Social Welfare and Business Management
"Management House”
CONTENTS
[Bhanu Pratap Singh - IISWBM] Page 1
Certificate
Acknowledgement
Preface
CHAPTER ONE: INTRODUCTION
1.1 Consumer Behavior
1.2 Buying Behavior
1.3 Decision Process
1.4 Advertising
1.5 Celebrity Endorsement
1.6 Successful Endorsements/ Endorsers
1.7 Forms of Celebrity Endorsements
1.8 Perspectives to Endorsement
1.9 Risks Involved in Celebrity Endorsement
1.10 Methods to Reduce Risk in Celebrity Endorsement
CHAPTER TWO: LITERATURE REVIEW
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Need of the study
3.2 Objectives of the study
3.3 Research Methodology
3.4 Managerial Implications
3.5 Limitations
CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION
CHAPTER FIVE: CONCLUSION
Bibliography
Annexure
[Bhanu Pratap Singh - IISWBM] Page 2
Chapter One
INTRODUCTION
A challenge faced by companies is how to influence the purchasing behavior of consumers
through celebrity endorsement. For more than fifty years the advertising industry
has been using celebrity endorsement, Marilyn Monroe and Marlène
Dietrich are famous examples (Iddiols, 2002). Research has shown that
the use of celebrities in advertisements can have a positive influence on
the credibility, message recall, memory and likeability of the
advertisements and finally on purchase intentions (Menon, 2001;
Pornpitakpan, 2003; Pringle and Binet, 2005; Roy, 2006). Today – no
doubt inspired by the declining effectiveness of the different marketing
communications (Blondé and Roozen, 2006) - the advertising industry is
willing to pay the increasing rewards the celebrities are asking (the costs
of the spot with Nicole Kidman for Channel V amount to 7.5 million Euro;
David Beckham for Adidas $160 million; Gilette $68 million and Pepsi
$25.5 million; Tiger Woods for Nike’s golf advertisements $18 million).
The crescendo of celebrities endorsing brands has been steadily increasing over the past
years. Marketers overtly acknowledge the power of celebrities in influencing consumer-
purchasing decisions. It is a ubiquitously accepted fact that celebrity endorsement can bestow
special attributes upon a product that it may have lacked otherwise. But everything is not
hunky-dory; celebrities are after all mere mortals made of flesh and blood like us. If a
celebrity can aggrandize the merits of a brand, he or she can also exacerbate the image of a
brand.
“Any brand can get a celebrity. That is easy. But getting a celebrity matching with the right
brand, to the right degree, at the right time, for the right purpose and in the right way... that is
not easy.”
“The health of a brand can definitely be improved up to some extent by celebrity
endorsement. But one has to remember that endorsing a celebrity is a means to an end and not
an end in itself.”
1.1 CONSUMER BEHAVIOR
[Bhanu Pratap Singh - IISWBM] Page 3
It can be defined as the process and activities people engage in when searching for, selecting,
purchasing, using, evaluating and disposing of product and services so as to satisfy their
needs and desires. Company's success in influencing purchase behavior depends in large part
on how well they understand consumer behavior. Companies need to know the specific need
customers are attempting to satisfy and how they translate into purchase criteria. They need
to understand how customers make purchase decision.
1.2 BUYING BEHAVIOR
Consumer decision-making varies with the type of buying decision they make. Companies
need to understand how customers make purchase decisions. The decision to buy toothpaste,
a tennis racquet, a personal computer and a new car are al]-different. Complex and big-ticket
item products are likely to take more time as compared to impulse product. Consumer buying
behavior depends upon the degree of differences along the brands.
1. Complex Buying Behavior:
Consumers engage in complex buying behavior when they are highly involved in purchase
and are aware of significant differences among brands. This is usually the case when the
product is expensive, bought in frequently, risky and highly self-expressive. Typically the
consumer does not know much about the product category and has much to learn. For
example person buying a personal computer knows what attributes he is looking for.
Consumer buying behavior involves a three-step process. First, the buyer develops beliefs
about the product. Second, he/she develops attitudes about the product. Third, he/she makes a
thoughtful purchase choice.
2. Dissonance: Reducing Buyer Behavior:
Sometimes the consumer is highly involved in a purchase but sees little difference in the
brands. The high involvement is based on the facet that the purchase is expensive, infrequent
and risky. In this case the buyer will shop around to learn what is available but fail quickly,
perhaps responding primarily to good price or to purchase convenience. For example carpet
buying is a high-involvement decision because carpeting is expensive and self-expressive yet
the buyer may consider most carpet in a given price range to be the same. After the purchase,
the consumer might experience dissonance that stems from noticing certain dissatisfying
features of the carpet or hearing favorable thing about other carpets. The consumer will be
alert to information that justifies his/her decision.
[Bhanu Pratap Singh - IISWBM] Page 4
3. Habitual Buying Behavior:
Many products are bought under conditions of low consumer involvement and in the absence
of significant brand differences. Consider salt, consumer has little involvement in this product
category. They go to the store and reach for the brand. If they keep reaching for the same
brand it is out of habit not out of strong brand loyalty. There is good evidence that consumers
have low involvement with most low cost, frequently purchased products. With low
involvement products, consumer behavior does not pass through the normal belief, attitude
and behavior sequence. Consumers do not search extensively about the brands.
4. Variety -Seeking Buying Behavior:
Some buying situations are characterized by low consumer involvement but significant brand
differences. The consumers often do a lot of brand switching. Think about cookies,
consumers have some beliefs about cookies; they choose a brand of cookies without much
evaluation, while the evaluation about the product is made during consumption. Next time the
consumer may reach for another brand out of boredom or for a different taste. Brand
switching occurs for the sake of variety rather than out of dissatisfaction.
1.3 DECISION PROCESS
Smart companies always research the buying decision involved in the product category. They
ask the consumers their consumers that how they make their brand choices and how satisfied
they are at purchase. The consumer passes through five stages as following:
• Problem Recognition.
• Information Search.
• Evaluation Alternative.
• Purchase Decision.
• Post Purchase Behavior.
Clearly the buying process starts long before the actual purchase and has consequences
afterwards. The model implies that consumer passes sequentially through five stages in
buying a product. But this is not the case, especially with low involvement purchase.
Consumer may skip or reverse some stages. Thus women buying her regular brand of
toothpaste go directly from the need for toothpaste to the purchase decision, skipping
[Bhanu Pratap Singh - IISWBM] Page 5
information search and evaluation. But a consumer interested in buying laptop will pass
through all the stages stated above.
1.4 ADVERTISING
Half the money I spend on advertising is wasted; the trouble is, I don't know which half" -
John Wanamaker. father of modern advertising.
Advertising is an important social phenomenon which both stimulates consumption and
economic activity and models lifestyles and a- certain value orientation. Consumers are
confronted with substantial daily ‘doses of advertising’ in multimedia. Every one seems to
hold an opinion about various aspects of advertising ranging from amusement and admiration
to cynism and condemnation. On one hand advertising is appreciated enough to be the subject
of TV talk shows and comedy skits, to have reels of award winning commercial play in
theatres to have its art and slogans to worn proudly on clothing and to hear advertising
phrases become the idiom of everyday speech. On the other hand, consumers fear covert
manipulation and subliminal techniques and often complain about advertising clutter,
banality, sexism, predation of children and continuing proliferation into newer media and
venues.
Advertising is defined according to Kotler as:"any paid form of non-personal presentation
and promotion of ideas, goods or services by an identified sponsor". The paid aspect of the
definition means that space -or tome for an advertising message must be bought, while the
non-personal aspect means that advertising involves mass media such as TV, radio,
magazines, newspapers and billboards that can transmit a message to a large number of
individuals often at the same time. Advertising is the best-known form of promotion because
it can be a very cost-effective method of communicating with large audiences and it can be
used to create brand images, enabling the seller to repeat a message many times. Also it is
quite pervasive (Belch and Belch, 2001).
Advertising plays a critical role in capitalist economies in creating demand for industrial
output. Thus, advertising clients are predominantly profit-seeking corporations. In 1997, in
the U.S. alone, over $175 billion USD was spent on advertising. Non-profits are not typical
advertising clients, and rely upon free channels, such as public service announcements. While
advertising can be seen as necessary for economic growth, it is not without social costs.
[Bhanu Pratap Singh - IISWBM] Page 6
Unsolicited Commercial Email and other forms of spam have become so prevalent as to have
become a major nuisance of users of these services, as well as being a financial burden on
internet service providers. Advertising is increasingly invading public spaces, such as
schools, which some critics argue is a form of child exploitation. One scholar has argued that
advertising is a toxic by-product of industrial society which may bring about the end of life
on earth.
Main features of advertising are:
• It can be very cost -effective method for communicating with large audience.
• Advertising can be used to create brand image and symbolic appeals for a company or
a brand, a very important capability for companies selling products and services that
are difficult to differentiate on functional attributes.
• Advertising is ability to strike a responsive chord with the consumer when
differentiation across other elements of marketing mix is difficult to achieve. The
nature and purpose of advertising differ from one industry to another and/or across
situations. The targets of organisations advertising efforts often vary, as do
advertising's role and function in the marketing program. One advertiser may seek to
generate immediate response or action from the customer; another may want to
develop awareness or a positive image for its product or services over a period of
time.
1.4.1 Advertising Objectives
Advertising objectives can be classified according to whether their aim is to inform, persuade
or remind. These advertising objectives are of three types:
l. Informative Advertising:
This type of advertising is basically in the pioneering stages of the product category. Its
objective is to build primary demand. For example, the yoghurt industry initially had to
confirm consumers of yoghurt's nutritional benefits. E.g. telling the market about a new
product or suggesting new uses for a product.
2. Persuasive Advertising:
[Bhanu Pratap Singh - IISWBM] Page 7
This type of advertising is used in the competitive stage. Here the objective is to build
selective demand of a particular brand. For example, Chivas Regal attempts to persuade its
customers that it provides better taste and status than other brands of scotch whiskey. E.g.
telling the market about a new product or suggesting new uses for a product.
3. Reminder Advertising:
This type of advertising is important for mature products i.e. the products that have an
established market already. The objective of advertising here is to remind people to purchase
a particular brand. For example, expensive four colour ads of Coca Cola in magazines are
intended to remind people to purchase Coca Cola,
Another example: reminding customers of the product should it be needed in the near future.
Volkswagen often reminds consumers of the reliability of their product. Now the 5M's of
advertising are:
• Mission- What is the advertising objective?
• Money-How much amount could be spent?
• Message-What message would it convey?
• Media-What media should be used?
• Measurement-How are the results going to be evaluated?
1.4.2 Advertising and Consumer Behavior
Through researches various models have come up that describe the various facts of consumer
behavior. These models suggest how the consumers behave in response to a particular
marketing communication and why do they behave so. The market researchers tried to
understand the response process and the manner in which these communications work
(especially advertising). There are three critical intermediate effects between advertising and
the desired effect of advertising (purchases) these include cognition, the thinking dimensions
of a person's response: affect the feeling dimension; and experience which is a feedback
dimension based on the outcomes of product purchasing and usage. They conclude that
individual responses to advertising are mediated by factors such as motivation and ability to
process information, which can radically alter the individual's response to advertising. It is
suggested that the effects of advertising should be evaluated using these dimensions, with
some intermediate variables more important than other depending factors such as product
[Bhanu Pratap Singh - IISWBM] Page 8
category, stage of the product life cycle, target audience, competition and the impact on other
marketing-mix components.
1.4.3 Application of the reference group concept
Some advertisers to communicate with their markets use Reference group appeals very
effectively. People or group situations with a target audience are used to promote goods and
services by subtly inducing the prospective consumer to identify with the pictured user of the
product or service. This identification may be based on admiration (an athlete), on aspiration
(a celebrity or way of life), on empathy (with a person or a situation), or on recognition (a
person real or stereotypical or of a situation). Five major types of reference group appeals are:
• Celebrity Appeals.
• Expert Appeals.
• Common Man Appeals.
• Executive Appeals.
• Trade or Spokes-character Appeals.
These appeals as well as less frequently employed appeals are often pperationalized in the
form of testimonials or endorsements. In the case of common man they may be presented as
slice-of-life commercials.
Celebrities particularly movie stars, TV personalities, popular entertainers, sports icons
provide a very common type of reference group appeal. Reference group appeals to the loyal
followers and too much of the general public, celebrities represent an idealization of life that
most people imagine they would love to live. Advertisers spend enormous sums of money to
have celebrities promote their products, with the expectation that the reading or viewing
audience will react positively to the celebrities association with the product.
Those advertisements featuring celebrities are rated more positively. This is especially true
among teenagers, who are more likely to project the celebrities' credibility to the advertising
message and the endorsed product.
1.5 CELEBRITY ENDORSEMENT
Celebrity endorsements pull in hundreds of crores every year, and are widely preferred by
companies to promote their products. Using celebrities for endorsing brands has become a
[Bhanu Pratap Singh - IISWBM] Page 9
trend for building the brands as well as the company's image. Who are these celebrities? And
what does celebrity endorsement mean? A celebrity is a person who is well recognized by the
public, and has a reputation for his/her expertise in his/her chosen silos. Sports persons and
film stars fit the bill perfectly. Promotion of a company's products through these celebrities is
termed as celebrity endorsement. The company makes use of the celebrity's characteristics
and qualities to establish an analogy with the products specialties with an aim to position
them in the minds of the target consumers. Celebrity endorsement, thus, is one of the
powerful tools adopted by companies/companies to consolidate their brand(s) in the crowded
marketplace. Consumers prefer to own a brand that has a good reputation, and when someone
like a famous film star or a sport star is associated with that particular brand, it is obvious that
the consumers will get attracted to it, because the consumer wants to maintain some status,
and feels that using a brand promoted by a star can satisfy that longing.
Celebrity Endorsement in India
Phase 1: The Pioneering Phase (1950-1980)
This phase was characterized by: -1. Limited channels of communication2. Demand exceeded supply3. Heavy regulation and governmental regulationssome bigger companies from their global experience introduced the concept of celebrity endorsement. HLL has used Hindi film stars to endorse their beauty soap Lux since the fifties.
Phase 2: The Growth Phase (1980-1990)
The introduction of television added a variable effective medium of communication. Indian stars going global with events like Asiads and World Cup victory. Vimal, Thums-Up, Gwalior and Dinesh are some of the other brands that used star-appeal in the early days of mass advertising. There was a spurt of advertising, featuring stars like Tabassum (Prestige Pressure-cooker), Jalal Agha (Pan Parag Pan-masaala), Kapil Dev (Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings).
Phase 3: Globalisation
In highly competitive markets, the following realities about brand management exist: -1. Product differentiating factors are duplicable and imitable. 2. All long existing and successful brands imbue their products with a meaning.
1.5.1 Why Celebrities?
[Bhanu Pratap Singh - IISWBM] Page 10
There is a myth that celebrity endorsement is used to give a brand advantage over its
competitors. However, choosing a celebrity for this purpose requires considerable amount of
calculations. There should be something common between the brand and the celebrity
promoting it. Let us come to the main question as to why companies use celebrities to
promote their brands. Is there a real need to associate a celebrity with the product? Yes seems
to be the resounding answer. This is because a company needs to create awareness and
interest in the consumers mind when it unveils a new brand or product. To be successful,
brands need to convince consumers that they carry a different image and value from other
competing products. In other words, brands have to show their true personality to the
potential consumer(s).
An effective way to do this is through celebrity endorsements. As MG Parmeswaran,
executive director of FCB Ulka says, "As advertising professionals, we recommend celebrity
endorsements when the case is justified. There are many cases where you need to use the
celebrity to break out of a category clutter. At times, celebrity endorsement is used to build
credibility to the brand offer." People always wish to see their favorite stars and companies,
and advertisers are quick to capitalize on such ideas. Endorsement of a product/service by a
celebrity gives out the message that it is as authentic and credible as the celebrity is. The urge
that people have of enjoying the same recognition and status like their favorite stars is often
the main reason for the increasing use of celebrities for products/services endorsement.
Celebrities increase brand awareness and define values and new dimensions of the brand.
Companies use this approach to capture mind and market spaces for their brands. The
underlying reason for any celebrity endorsement has to be more sales, with more consumers
using the brand. The more effective the process is in raking up more and more moolah, the
more successful the celebrity is that is the bottom line.
There is a flurry of ads on the television, the radio, and even in theatres these days, and most
of these ads feature either film stars or cricketers, or both. As a result, it is becoming
increasingly tough to ensure that one's share of voice is heard. Using a celebrity in an ad is,
therefore, doubly effective, in that it captures a definite mind share of the prospective
consumer, and if the features and attributes of the brand match with those of the celebrity, the
brand will surely hit gold. Rahul Dravid is considered the most dependable batsman in the
Indian team, and he transfers this characteristic of reliability and dependability to the brand(s)
he endorses. The reason why Castrol uses Dravid to promote its engine oil seems to be
[Bhanu Pratap Singh - IISWBM] Page 11
logical, as the company wants to convey to the target customers that Castrol is dependable,
and gives the vehicle a long life.
1.5.2 History of Celebrity Endorsement
Since radio became commercial in the late 20s and from the first flickering of TV screens in
the late 40s, celebrities have done commercials.
The advent of celebrity endorsements in advertising in India began when Hindi film and TV
stars as well as sportspersons began encroaching on a territory that was, until then, the
exclusive domain of models. One of the first sports endorsements in India was when Farokh
Engineer became the first Indian cricketer to model for Bryl cream. The Indian cricket team
now earns roughly Rs. 100 cr. through endorsements. There was a spurt of advertising,
featuring stars like Tabassum (Prestige Pressure Cookers), Jalal Agha (Pan Parag), Kapil Dev
(Palmolive Shaving Cream) and Sunil Gavaskar (Dinesh Suitings).
1.5.3 Is it smart to use Celebrity Endorsements?
Stars, who are known to shape destinies, cast an enormous influence. No, we're not talking
about astrology here. We're referring to the powerful effect of celebrities on destinies of
brands. One approving nod from a famous face can translate into millions in brand sales.
Perhaps that's why the world over, companies have been using stars to endorse everything,
from food to food chains, from soft and hard drinks to health drinks, from clothes and
accessories to cars (and the tyres on which they run). Even political parties are awestruck by
the charisma of stars.
Such is the magnetism of celebrities in this country that in the recent general elections, major
political parties fielded a record number of film stars and cricketers to contest from important
constituencies around the country.
Celebrity endorsements are very expensive. Therefore their use in an ad should be justified.
In other words, the message strategy for a brand should strongly warrant the use a known
face in an idea. Sadly, very often the celebrity is hired first and an idea is then weaved around
his or her presence.
A celebrity's presence in the ad should be contextual. When cricket player Sachin Tendulkar
declares, "Boost is the secret of my energy," it doesn't seem out of context. Internationally,
[Bhanu Pratap Singh - IISWBM] Page 12
Nike's association with Michael Jordan is legendary and also logical. Celebrity endorsements
work best when the celebrity is not introducing the brand. When the product already has a
strong identity and a USP that is well established, then a celebrity can come in and give the
brand an added fillip and generate some more interest value. However, what is of paramount
importance is to find a complete fit between the values of the brand and the values of the
celebrity. One needs to create a unique situation or story that links the celebrity to the
product.
Celebrity Endorsements as a strategy signing up stars for endorsements is a time-tested
strategy and has been effectively used by some of the top brands in the world including Nike
and Pepsi, In India too, HLL has used Hindi film stars to endorse their beauty soap Lux since
the fifties. Vimal, Thrums Up, Gwalior and Dinesh are some of the other brands that used
star-appeal in the early days of mass advertising. And who can forget Kapil 'Palmolive' Dev?
Star endorsements have several benefits, key among them being building credibility,
fostering trust and drawing attention... any or all of which can translate into higher brand
sales. So how does one decide whether to put a celebrity in an ad? Ideally, this should be
dictated by the communication idea. Celebrity endorsements should be used when the case is
justified. There are many cases where you need to use the celebrity to break out of a category
clutter. At times celebrity endorsement is used to build credibility to the brand offer.
Most experts concur that, when used judiciously, celebrity endorsements can be an effective
strategy. And there are many examples of good and bad use of celebrities. Actor Amitabh
Bachchan, who has been used by some companies like Parker Pens and ICICI Home Loans
remarkably well while some others have been unable to exploit his Big B status too well.
Shah Rukh Khan's endorsement of Hyundai Santro too seems to have worked well.
In a test of the match up hypothesis, Kamins (1990) demonstrated that the positive impact of
a celebrity endorser depends in part on proper fit between the celebrity and the product. Some
evidence even suggests that Wall Street values the use of celebrity endorsers - Agrawal and
Kamakura's (1995) analysis of stock price movements showed that press releases announcing
celebrity endorsement contracts resulted, on average, in a .44% excess return (Journal of
Advertising, July 1997). Yet, there are some who don't have much conviction in star
endorsements. Some people think that to be really successful, a brand needs to have a strong
identity of its own. It should ideally not piggyback on the identity of a celebrity and hope to
[Bhanu Pratap Singh - IISWBM] Page 13
achieve success. Celebrity endorsements are capable of manifesting both favorable and
adverse effects for the brands with which they associate.
1.5.4 Six uses of Celebrity Endorsements
Establishes Credibility: Approval of a brand by a star fosters a sense of trust for that
brand among the target audience- this is especially true in case of new products.
The role of a celebrity endorser in an advertising campaign is, without doubt, linked
to the reputation of the celebrity. If the reputation is damaged, more often than not for
reasons other than professional ,then the quality of his reputation does suffer
articulacy if it is to do with his (or her) public behavior.
Example: Dyna ad by Katrina Kaif
Attracts Attention: Celebrities ensure attention of the target group by breaking the
clutter of advertisements and making the ad and the brand more noticeable.
Example: Shahrukh khan in pespi, Hrithik Roshan in Sony Erricson
Associative Benefit: A celebrity's preference for a brand gives out a persuasive
message - because the celebrity is benefiting from the brand, the consumer will also
benefit.
Example: Amitabh Bachchan in ‘Dabur Chwyanprash’.
Psychographic Connect: Stars are loved and adored by their fans and advertisers use
stars to capitalize on these feelings to sway the fans towards their brand
Example: Dhoni in Aircell
Demographic Connect: Different stars appeal differently to various demographic
segments (age, gender, class, geography etc.).
Example: Amitabh Bachchan with child in Dadur Honey, Sunny Deol in Lux cozi ad.
Mass Appeal: Some stars have a universal appeal and therefore prove to be a good
bet to generate interest among the masses.
Example: Sharukh khan And Amitabh Bachchan in Polio Promotion, Amir Khan in Atithi Devo
Bhawa.
1.5.5 Mechanism and Theories of Celebrity Endorsement
Celebrity endorsements give a brand a touch of glamour and the hope that a famous face will
provide added appeal and name recognition in a crowded market. In the battle for the mind,
you get the customer excited by showing him a known face, and an effective demand is
created. In short it helps increase the recall value of the brand. A piece of research states that
[Bhanu Pratap Singh - IISWBM] Page 14
the target audience age group of 15-30 gets influenced first by cricketers, then Bollywood
stars and only then music, festivals and food.
According to Source Credibility Theory, acceptance of the message depends on 'Bxpertness'
and Trustworthiness' of the source. Expertness is defined as the perceived ability of the
source to make valid assertions. Trustworthiness is defined as the perceived -willingness of
the source to make valid assertions. Audience acceptance increases with the expertness of the
source and the ability of the audience to evaluate the product.
According to Source Attractiveness Theory, which is based on social psychological research,
the acceptance of the message depends on familiarity, likeability and similarity, familiarity is
the audience's knowledge of the source through exposure; likeability is the affection for the
source's physical appearance and behavior while similarity is the resemblance between source
and receiver. This theory explains the message acceptance in two ways: Identification and
Conditioning. Identification is when the receiver or the target audience of the communication
begins to identity with the source's attractiveness, and hence tends to accept his opinions,
beliefs, habits, attitudes etc. On identification, a quote from Bijou Kurien, COO, Titan, "We
decided on Aamir because we wanted someone who is a bit iconic, who is style-conscious
himself, and somebody who cuts across both sex and age group, between urban and rural
India. A celebrity is one who is moldable and who is not over-exposed". Conditioning is
when the attractiveness of the source is supposed to pass on to the brand after regular
association of the source with the brand.
Grant McCracken has criticized the previous two theories and proposed the Meaning
Transfer Theory, The theory explains that a celebrity encodes a unique set of meanings which
if well used can be transferred to the endorsed product. Such a transfer takes place in three
stages - encoding meanings, meaning transfer, meaning capture (Figure 1).
I. Encoding Meanings: Each celebrity has a unique set of meanings, which can be
listed by age, gender, race, wealth, personality or lifestyle. In this way, the
celebrities encode a set of meanings in their image. For example Preity Zinta can
be seen as a lively, charming, bubbly, witty and enthusiastic.
II. Meaning Transfer: This stage transfers those meanings to the product. When
skillfully portrayed, celebrities can communicate this image more powerfully than
lay endorsers.
[Bhanu Pratap Singh - IISWBM] Page 15
III. Meaning Capture: This assumes that consumers purchase products not merely
for their functional value but also for their cultural and symbolic value. The theory
says that consumers buy the endorsed product with the intention of capturing
some of the desirable meanings with which celebrities have passed on to the
product. This is more eminent in lifestyle products like clothes, perfumes, cell
phones etc.
Does celebrity endorsement really work? Theoretically yes, because the qualities associated
with the endorser are associated with the brand and the brand therefore remains at the top of
the consumer's mind. However one needs to realize that the impact of an endorser cannot be
sustainable in all product categories and in all the stages of brand life cycles. It really depends
upon the type of product. If it is a 'functional brand', then the product itself is the hero. Here
any celebrity association with the brand without corresponding performance of the product
will not be sustainable. While increase of' image brands', like the categories of soaps, soft
drinks, cigarettes etc., where it is difficult to distinguish between the products, celebrity
endorsements help to distinguish between the brands at an emotional level. A research
conducted by Synovate, a global market research firm, revealed that 47% people would be
more likely to buy a brand that was endorsed by their favorite celebrity.
Pepsi Co. has used a variety of celebrities including Aishwarya Rai, Hrithik Roshan, Amitabh
Bachchan, Kareena Kapoor, Rahul Khanna, Fardeen Khan, Sachin Tendulkar etc. Amongst
advertisements featuring celebrities, Pepsi tops the heap with the highest recall of 70%, while
archrival Coke is lower across all markets with 52% recall. This proves that Pepsi has really
exploited the use of celebrities in their advertisements and has worked.
Hindustan Lever's 'Lux' soap in India has been using popular film actresses to endorse the
soap since its launch four decades ago implying that they owe their stunning looks to the
brand. This consistent message hence reinforces the brand values and has been successfully
able to position the soap rightly as the 'beauty soap".
It would be difficult to judge the direct effect of celebrity endorsement on the sales or profits
of the company. On Amitabh Bachchan endorsing RIN, an HLL spokesperson says that it
was too early to gauge the success of 'Rin1 in terms of sales and that though Dabur healthcare
products' sales had improved, the increase could not be solely attributed to him. Similarly,
there are also cases wherein there was a dramatic change in the sales figure after the
endorsements. For example Rahul Malhotra, Associate Director Marketing, P&G India
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quotes "Certainly, it has helped us promote our brand 'Head & Shoulders'. Last year, we were
ranked as No. 2 and this year we are market leaders in this segment with over 45% market
share".
D. Garg, Vice-President (Marketing), Dabur India Ltd quotes, "A celebrity does help in
increasing brand sales, but only if he/she is selected carefully and used effectively. The
personality of the brand and the celebrity have to complement each other and the selection of
the celebrity is, therefore, very important."
1.5.6 SCOPE OF CELEBRITY ENDORSEMENT:
The use of testimonials by advertisers dates back to the 19 th century when medicines were
patented. Firms have been juxtaposing their brands and themselves with celebrity endorsers
(e.g., athletes, actors) in the hope that celebrities may boost effectiveness of their marketing.
The increasing number of endorsements throws a valid question to the consumers. Is there a
science behind the choice of these endorsers or is it just by the popularity measurement?
What are the reasons which lead to impact of celebrity endorsement on brands? The success
of a brand through celebrity endorsement is a cumulative of the following 14 attributes.
Greater the score of the below parameters, greater are the chances of getting close to the
desired impact.
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Figure: 1
1.5.7 Positive Impacts of Celebrity Endorsement on the Brand
Approval of a brand by a star fosters a sense of trust for that brand among the target audience.
This is especially true in case of new product. Celebrities ensure attention of the target group
by breaking the clutter of advertisements and making the advertisement and the brand more
noticeable. A celebrity's preference for a brand gives out a persuasive message and hence,
because the celebrity is benefiting from the brand, the consumer will also benefit. There is a
demographic and psycho graphic connection between the stars and their fans. Demographic
connection establishes that different stars appeal differently to various demographic segments
i.e. age, gender, class, geography etc., while psycho graphic connection establishes that stars
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are loved and adored by their fans. Some stars have a universal appeal and therefore prove to
be a good bet to generate interest among the masses. Another invaluable benefit from
celebrity endorsements is the public relation opportunities.
Dwane Hal Dean studied the effects of three extrinsic advertisement cues viz. third party
endorsement, event sponsorship and brand popularity on brand / manufacturer evaluation. It
was observed that endorsement significantly affected only product variables (quality and
uniqueness) and one image variable (esteem). The third party endorsement hence may be
perceived as a signal of product quality.
Goldsmith et al. assessed the impact of endorser and corporate credibility on attitude-toward
the-ad, attiiude-toward-the-brand, and purchase intentions. 152 adult consumers were
surveyed who viewed a fictitious advertisement for Mobil Oil Company. They rated the
credibility of the ad's endorser, the credibility of the company, and attitude-toward-the-ad
(Aad), attitude-to ward-the-brand (AB), and purchase intentions. It was observed that
endorser credibility had its strongest impact on Aad while corporate credibility had its
strongest impact on AB. The findings suggest that corporate credibility plays an important
role in consumers' reactions to advertisements and brands, independent of the equally
important role of endorser credibility.
Looking at the effect of celebrity endorsement on the wealth of a company a classic example
of Michael Jordan can be used. At the time of rumors of Michael Jordan returning to NBA in
1995, he was endorsing products of General Mills (Wheaties), McDonalds (Quarter
Pounders, Value Meals). Nike (Air Jordan) and Quaker Oats (Gatorade). Study conducted by
Mathur et al. associated with Jordan's endorsements shows that the anticipation of Jordan's
return to NBA. And the related increased visibility for him resulted in increase in the market
adjusted values of his client firms of almost 2 percent, or more than $1 bn in stock market
value. From this study one can observe that the major celebrity endorser with rumors or
otherwise has a tremendous potential to influence the profitability of endorsed products.
Semi-partial endorsement indicates that when a company uses famous characters from any
TV soaps for brand endorsements, consumers tend to relate to the character that he or she
plays in the soap and hence can attract more credibility. For example, Smriti Irani who plays
Tulsi' in a famous soap has garnered a lot of support from the middle-class housewife today.
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If she would endorse a brand, there would be more relativity and credibility. It can be said
about Priya Tendulkar who used to play the character of Rajani.
1.5.8 Negative impacts of Celebrity Endorsement on the brand
More often talked about is the extreme usage of a celebrity called 'lazy advertising', that is
inadequate content masked by usage of a celebrity. A good example is the use of Boris
Becker by Siyaram and Steve Waugh by ANP Sanmar. Also as said earlier, associating with a
star, in itself does not guarantee sales. There is also the fear of Brand-celebrity disconnect
which points out that if the celebrity used represents values that conflict with the brand
values, the advertising would create conflict in the minds of the target audience.
Clutter in brand endorsements is very prominent these days and such kind of over-exposure
can be bad for the brand as the recall value drops by a huge margin. A popular drawback of
celebrity endorsement is the 'Vampire Effect' or the celebrity overshadowing the brand. Some
viewers forget the brand that a celebrity is approving. Others are so spellbound by the
personality of the celebrity that they completely fail to notice the brand being advertised.
Two new drawbacks can be seen these days what companies call Celebrity Trap and
Celebrity Credibility. Celebrity trap is when the celebrity becomes an addiction for the
marketing team and the task to find substitutes becomes more and more difficult, leading to
surfeit of celebrities. Celebrity credibility refers to skepticism by the consumers regarding the
celebrities, especially when there is anything negative regarding the celebrity associated with
the brand in the news, then brand is bound to be affected. For example, Air Jordan's
generated revenue sales of $130 million in the first year. The sales dropped miserably in the
second year when Jordan missed 62 games due to a broken foot. Another main worry of the
advertisers is that their celebrity endorser would get caught in a scandal or an embarrassing
situation.
Multiple product endorsement also has a negative impact on customers' purchasing
intentions. Tripp et al. investigated the effects of multiple product endorsement by celebrities
on customers' attitudes and intentions. They found that the number of products a celebrity
endorses negatively influences consumer perception of the endorser and the advertising itself.
It was suggested that when as many as four products are endorsed, celebrity credibility and
likeability, as well as attitude towards the ad, may attenuate.
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Superstar Amitabh Bachchan endorses multiple brands like Pepsi, Mirinda, ICICI, BPL,
Parker pens, Nerolac, Dabur, Reid & Taylor, Maruti Versa, Hajmola, Tide, Cadbury and a
few social messages. It has worked in some cases, while in some cases it has not.
D. K. Jain, Chairman and President, Luxor Writing Instruments Pvt. Ltd, the company of the
Parker brand said. "Using Amitabh Bachchan as our brand ambassador has helped in
strengthening our brand image and recall within the target audience". Tarun Joshi,
Communications Custodian, Reid & Taylor said, "Amitabh Bachchan is an icon with
universal appeal and has helped us to reach out to the real 'Bharat.' In fact, agents and
retailers have told us that already customers have started asking about the 'Amitabh wali
suiting.1" Increase of Nerolac Paints, which was endorsed by Amitabh Bachchan, around 80%
of the respondents when asked to associate Bachchan with any paint, did so with Asian
Paints, which is the biggest competitor of Nerolac.
The budget or cost is an important factor for celebrity endorsement. Depending on the status
of the celebrity, remuneration could run into millions of rupees for several years or may also
include a profit sharing plan. For example when S. Kumar's used Hrithik Roshan for their
launch advertising for Tamarind, they reckoned they spent 40 - 50 per cent less on media due
to the sheer impact of using Hrithik. Sachin's endorsements got him $18 million over five
years. When Aamir first endorsed Pepsi in 1995, he received Rs 17 lakh for it; his Coke
commercials in 1999 got him Rs 2 crore. Hrithik Roshan in his highflying days reportedly
made over Rs. 20 crore in endorsements and events by 2001.
However, a number of brands have been built without celebrity endorsement. For some of
their brands, Hindustan Lever and Procter & Gamble do not believe in celebrity endorsement
because they think that consumers, especially housewives, are more likely to identify with a
layperson on screen than a celebrity. Procter & Gamble launched its 'Rejoice' brand in India
with testimonials from ordinary women in their TV advertising. Few more examples of this
will be Lifebuoy, Wheel, Dettol, Close Up, and Fevicol etc.
1.5.9 Choosing the Right Celebrity
Amitabh Bachchan, Shahrukh Khan, Hrithik Roshan, Sachin Tendulkar, and Sourav Ganguly
figure among a handful of celebrities who have been endorsing brands. Companies have gone
a step further to localize their endorsements, so as to have a stronger impact by roping in the
regional stars, who command a good following among the local consumers. It is,
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nevertheless, high time companies rethink their strategies of using celebrities for endorsing
their brands, as this trend is fast becoming a cliché, what with every other promotion
featuring one or another, and the trick losing its charm. The question is whether the celebrity
can spread his/her values over such a wide portfolio of brands that are endorsed, and what
kind of impression would the consumer have for the endorsed brand? The other aspect which
sees companies fork out huge (sometimes astronomical) sums of money for getting their
products endorsed by celebrities has to be looked at from the return on investment point of
view, and also the marketing angle, which preaches uniqueness and differentiability of the
products.
Can celebrities make brands reach the heights the companies aspire for? It is difficult to
answer this question. Celebrities can build brands, and at the same time, companies may have
to fold up if the endorsement does not click with the target audience. Companies need to be
careful before choosing a celebrity for endorsing their brand, as they spend huge amounts on
their brands and also on the celebrity. The use of a celebrity should help in building the
brand's image. The pros and cons of using a particular celebrity have to be considered before
using them for endorsements; and credibility of the celebrity is often one of the basic factors
in determining his/her suitability for the endorsement. Companies have to check if there
exists a match between the brand and the celebrity, and whether the deal is worth the
investment.
There are some basic criteria for selecting the right kind of celebrity for a brand. They are:
The celebrity's image has to fit with the advertising idea and match the target audience and
the product; values, popularity, credibility and the availability of the celebrity; cost of
acquiring the celebrity; previous endorsement (if any), and the celebrity's profession. There
should be a synergy between the celebrity, the ad message and the product. This helps in the
customers developing an interest towards the brand.
According to Ramesh J Thomas, principal executive officer, Equitor Management
Consulting, "The greatest danger is that because celebrities already carry a strong brand
character, a mismatch could be counterproductive to the brand. It is very tempting to be
carried away by the short-term exposure and interest that an endorsement could generate". As
all brands cannot make it big in the consumers mind through celebrity endorsements of their
products, the use of the celebrities for endorsements has to be justified. The brand can only
fare well in the market if it can generate some bonding or relationship with the endorser. If
this fails, the consumer may get confused, and that could hamper the future prospects of the
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brand. Experts opine that companies have to be careful in choosing the right celebrity for
promoting their brands, which could otherwise land them in trouble.
1.6 SUCCESSFUL ENDORSEMENTS/ ENDORSERS
Celebrity endorsements have found good acceptance among the customers as an effective
way of promoting brands. In a survey, it was found that in 20% of TV ads in the US feature
celebrities, most of them from the sports arena, and these are done to gain ground in the
consumers' minds with their interest for sports and sport stars. Nike has benefited from using
Michael Jordon, the famous basketball player by getting him endorse its shoes. Things have
worked Nike's way, as basketball is a highly popular sport in the US and when someone like
Michael Jordan says he uses Nike; it indeed creates a huge impact on the minds of the
consumers. Nike has, in a way, justified its use of Jordan through the profits it made. David
Beckham, the soccer player from the UK, is an icon both as a footballer and as an individual.
His gaming skills, stylish looks and lifestyle, have got him good recognition and a great fan
following all over the world.
When it comes to endorsements, analysts consider Beckham next only to Michael Jordan. He
has been associated with quite a few brands like Pepsi, Vodafone, Adidas, Gillette, Police,
Brylcream, etc. His lifetime deal with Adidas alone earns him $160 mn, with many of his
other endorsements being successful. Tiger Woods, the top golfer, has been associated with
Nike and Accenture3. The first 5-year deal he signed with Nike was worth $40 mn, and the
company later extended that. According to an estimate by Forbes magazine, Tiger Woods had
made as much as $78 mn between June 2002 and June 2003, of which a meager $7 mn (9%
of total) was from his tournaments.
In the Indian context also, there have been quite a few examples of brands, which have been
successful after being endorsed by famous personalities. The trend kicked off with movie and
television stars being used for the endorsements. HLL has been using film actresses to
endorse its beauty soap Lux. Amitabh Bachchan has been endorsing many brands for quite
some time now. Companies have been in a mad rush to include Bachchan in their promotions
to attract customers, because of the following and respect the senior and talented star carries.
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It is a sort of belief for every company and company that he can endorse any brand or any
product and that the association will win customer attention. This kind of reputation has often
led companies to spend huge amounts on signing film stars. Shahrukh khan also has been in
the endorsing business, and his endorsements include Pepsi, Hyundai Santro and Videocon to
name a few.
In India, cricket is followed like a religion and has, thus, turned to be a breeding ground for
stars that can be used by companies. Companies have been very quick in identifying this, and
started using cricket stars to endorse their brands/products. Kapil Dev, the great Indian
cricketer and "Wisdom Indian Cricketer of the Century", used to endorse Palmolive and
Boost during his tenure in the Indian cricket team. Now, the list of cricketers endorsing
brands will be a long one. The best and most widely regarded of them has to be Sachin
Tendulkar, also referred to as the little master, who carries a nation's hope on his shoulders in
every game that he plays. Tendulkar has been associated with nearly a dozen brands, and
companies have been paying him some hundreds of crores of rupees to vouch for their
brands. The little master has given his charismatic touch to brands like MRP, Pepsi, Boost,
TVS, Airtel, etc.
1.7 Forms of Celebrity Endorsements
A celebrity can endorse brands in different ways based on the purpose, the advertisement
media and the appeal to be generated. The product could be commercial ones or non-
commercial ones (social advertising). Following types of endorsement forms have been
identified to be heavily in use at present:
• As spokesperson, e.g. Amitabh Bachchan in KBC.
• In print and electronic advertisements, e.g. Shah Rukh Khan in Omega and Pepsi.
• In outdoor media like hoarding, e.g. Aishwarya Rai in Lux advertisement in some
parts of North India.
• As brand ambassadors: e.g. Fardeen Khan in Provogue
• The use of Brands by celebrities in movies: e.g. Hero Cycles, Pass Pass and Coke in
Yaadein.
1.7.1 Factors to choose endorser
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Companies must consider many factors when choosing a celebrity to serve as an advertising
spokesperson for the company or a particular brand. Studies have shown that advertising and
marketing managers take these various factors into account when choosing a particular
celebrity endorser.
Figure: 2
These most important factors are:
• Celebrities match with the target audience and the product or brand.
• The overall image of the celebrity.
• Cost of acquiring the celebrity.
• Trustworthiness.
• Risk of controversy.
• Celebrity's familiarity and likeability among the target audience.
Advertisers often draw attention to the ads featuring a physically attractive person who serves
as a passive or decorative model rather than as an active communicator. This is most common
with the cosmetic industries. Research suggests that physically attractive communicators
generally have a positive impact and generate a more favorable evaluation of both ads and
products than the less attractive models. For example, Revlon use super-model Cindy
Crawford in advertising for various cosmetic products. Advertisers must ensure that the
consumer's attention should go beyond the model to the product and advertising message.
Companies must also consider whether this might negatively impact advertising impact.
1.8 PERSPECTIVES TO ENDORSEMENT
Perspective to celebrity endorsement can be studied under the following heads:
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1.8.1 Company's Perspective to Endorsement
• A celebrity helps short hand a brand; in other words makes a brand stand out.
• Celebrities facilitate instant awareness and immediate attention.
• Celebrity values define and refresh the brand image and a celebrity adds dimension
to it.
• A celebrity adds new dimension to the brand image.
• A celebrity lends instant credibility or aspiration to the brand. Celebrities save time in
creating the credibility a company has to build into the brands.
• PR coverage is another reason for using a celebrity. Managers perceive celebrities as
topical, which creates high PR coverage. Indeed, celebrity-company marriages are
covered by most media, from television to newspapers.
Gestalt Perception means using a celebrity as a remedy. When a person is famous people
forget about what he looks like. As everyone knows the face, it is hard to judge whether the
person is pretty or ugly. The celebrity is a remedy to managers who run out of ideas.
1.8.2 Celebrity's perspective to endorsement:
The first reason that most celebrities would endorse a product for is the huge compensation
involved with it. Second reason why celebrities wish to endorse is to get an enhanced level
of acknowledgement based on the success of the product they are associated with. KBC and
Movers and shakers helped stabilize the fast declining career of their hosts by providing
strong audience recognition. Finally, endorsement breeds endorsement. Not only does the
subject end up getting better offers but the avenues in related and unrelated fields also open
up. Most of the cricketers for example have already been made to walk the ramp and a lot of
models have already made their way into movies.
Many American celebrities make huge sums of money endorsing products. Some big stars
won't appear in ads because they want fans to .think they have sold out. But many celebrities
who don't endorse in their native country endorse for the Japanese advertisers. Mega stars
like Meg Ryan, Brad Pitt, Demi Moore and Harrison Ford are paid in between Shnn to $3mn
for a few hours' work to make 15 to 30 sec commercials. While many celebrities are cashing
on these Japanese deals, they still try to protect their image at home, for which they have non-
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disclosure contracts. The reasons why Japanese companies are willing to shell out huge sums
of money for these stars are as follows:
• The American culture and its celebrities fascinate many Japanese.
• Japanese advertising emphasizes style and mood rather than substance.
• Consumers expect to be entertained.
• It boosts the endorsers' visibility and helps the marketing of their firms in Japan and
other Asian countries.
1.8.3 Consumer's perspective to endorsement
• Messages delivered by well-known celebrities achieve a high degree of attention
and recall for consumers.
• Celebrity Expertise perceived relevant image. Expertise is the knowledge that the
communicator seems to possess to support the claims made in the advertisements. A
well-known face would obviously speak for more expertise than an ordinary one. For
example, Sachin Tendulkar would always better advertise Reebok.
• Celebrities are perceived Trustworthy. Trustworthiness refers to the consumer's
confidence in the source for providing information in an objective and
• honest manner. People are more likely to trust the quality of a trustworthy celebrity
endorsed brand over a non-endorsed one.
• Ambitious psyche. People ape the celebrities in their day-to-day activities and many
even dreams to become like a celebrity some day. Some know they wouldn't become
as good as the celebrities but sharing common belongings makes them feel better.
• Physical Attraction. Consumers tend to perform positive stereotypes about such
people. Physically attractive people are more successful in changing beliefs than non-
attractive people.
But the personalities that the companies use for endorsing its product may not always be
"good guys". Sometimes some companies try to go off the traditional path and use the "bad
boys" for endorsement. This is mostly prevalent with the athletic-shoe companies who are
hiring the personalities engaged in misdeeds off the court or field. The earliest used "bad
boys" was former basketball star Charles Barkley to appear in the ad of Nike in the mid-90s.
Another basketball player Dennis Rodman was also used to endorse Nike. These were also
known for their rebellious nature. But what are the reasons behind these off the route
endorsements? There may be one explanation for this. These companies are targeting young
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trend setting males who often identify themselves with the scandalous and rebellious image
of these "bad boys". Through this the companies try to reach the actual mindset of these types
of audiences, thus being close to reality. In the current athletic shoe market, it appears that the
"bad boys" are boosting up the consumers more than the "good guys".
1.9 Risks involved in celebrity endorsement
There are not only benefits when it comes to celebrity endorsement; there are several risks
involved for companies that use celebrity endorsers. There are a number of risks that a
company takes into account when deciding to use a celebrity to endorse a brand. These are as
follow:
The overshadowing of product: According to Belch and Belch (2001)
overshadowing is a risk that companies must be aware of when using celebrity
endorser in marketing campaigns. According to Till (1998) this often occur when
companies try to establish a link between a celebrity and company when the endorser
are already sponsoring several other brands. The overshadowing effect will result in
that the consumer just sees the celebrity instead of the product. Since the endorsers
that Skånemejerier is using as said before don’t do any other major sponsorship they
don’t see this as a threat. The consumers might focus their attention to the celebrity
only and do not notice the product. So the company must use the celebrity who
enhances the brand image and also conveys the message to the target audience.
Overexposure: According to Tripp et al (1994) overexposure and overuse is an
important risk to consider when using celebrity endorsers. There is a risk that
consumers do not see the connection between the brand and endorser if he or she is
endorsing too many products. Ronny Månsson says that when it comes to
Skånemejeriers use of celebrity endorsers for Proviva Active they do not see any risks
concerning overexposure and overuse. Since the celebrities they are using are not
endorsing other brands that could interfere with the image they are trying to establish
between themselves and Proviva Active. And when the endorser is not endorsing any
other products there is neither any risk for overuse of the celebrity. Consumers are
sometimes skeptical of the celebrities because they think they are paid for endorsing.
This problem is prevalent when a celebrity endorses too many brands. So the
company must take care that the endorser is not overexposed. For instance Amitabh
Bachchan is endorsing too many brands. This may prove to be the risk of
overexposure.
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Negative celebrity information: According to Till and Shimp (1998) there is a risk
that the celebrity endorser can receive negative information and publicity which can
be transferred to the brand through the endorser. Skånemejerier fits into theory and
agrees that this is a risk they are aware of. The main risk is that one of their endorser
would use some illegal drugs to enhance their performance. They do not see any other
risk when it comes to negative information because they feel that their endorsers live
a healthy life and won’t do anything to risk that.
Investment risk: Walker et al (1992) says that celebrity endorsement is huge
financial risk for companies due to the fact that companies don’t have control over the
behavioural of the endorsers and therefore companies may invest money in something
that can be a huge set down for their company. Till (1998) agrees with Walker et al
(1992) and says that it is important to see how many products the celebrities are
endorsing. Skånemejerier has in their marketing budget a specific post for their
investments in celebrity endorsement and they now that if they invest a given amount
of money to hire a celebrity endorser they now that it will cost them up to the double
amount to actually launch a marketing campaign with the endorser. Ronny Månsson
says that there is larger risk to use a famous athlete but they are still willing to take
this risk because they want to transfer the image of their celebrities to their brand.
Therefore Skånemejerier fits into theory regarding investment risks.
Extinction: According to Ziegel (1983) there are many celebrities that disappear from
the media flashlight during their contract with a company. This is something that
companies should be aware of and think about when using celebrity endorsers. When
dealing with extinction we can see that Skånemejerier fits into theory. This is a risk
that Skånemejerier is aware of and says that there are chances that their endorser may
do weak performances when they are competing and therefore they will not be in the
media flashlight. Ronny Månsson also say that the season for athletes is fairly short so
they are not interesting for the media all year round which is a negative side of the
endorsement. There are also chances that the endorser might injure himself, which
makes him disappear from the media circus for a long time, because if they don’t
compete they won’t be shown in the media.
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A celebrity behavior may also pose a risk to the company if the celebrity gets involved in
controversies e.g. when Salman Khan got involved into a hit and run case his endorsement
contract with Thumbs Up was cancelled.
To avoid these problems, companies, prior to using a celebrity, researches his or her personal
life and background. Many endorsement contracts include a morals clause where the
company indicates the termination of the contract if the celebrity gets involved in any
controversy, which may harm the company's image.
1.10 Methods to reduce risk in celebrity endorsement
This section deals with theories concerning how using models to match celebrities to
products and services can prevent risks within celebrity endorsement.
Reducing risk
According to Tellis (1998) there are several ways in which companies can ensure
against some surprises that can occur when using celebrity endorsers. Companies
should start with a properly screening of candidates to ensure that they are buying the
right image, and that the risk with the celebrity contract is worth the potential risk for
damage. Companies can also set up contracts that have a moral clause. A moral clause
is a legal statement that gives companies the option to terminate a contract with a
partial fee or no fee at all. These clauses often state that if the celebrity becomes
involved in any situation or occurrence, which in the company’s reasonable opinion,
subjects Talent or Company to ridicule, contempt or scandal (ibid.).
Managing celebrity endorsers
According to Till (1998) companies must establish a link between the endorser and
the brand or product. When an associative link is built between the celebrity and the
brand each is then part of the other association set, a group of concepts, which are
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meaningfully related to a target brand. One good example of this is consumers
thinking of Michael Jordan when thinking about Nike and consumer thinking about
Nike when thinking of Michael Jordan. Repeated pairing of the two stimuli is a key to
associative learning process, because repeated repetition of the pairing of two stimuli
increases confidence that the presence of one stimulus predicts the presence of the
other stimulus. Within a celebrity endorser context, repeated pairings of the endorser,
increases consumer’s recognition that the brand is a good predictor of the presence of
the celebrity, strengthening the link between the brand and the celebrity
(Ibid.).According to Till (1998) companies often use a celebrity endorser sporadically
or opportunistically either at the whim of the client or the agency. Payback on the
investment in celebrity endorsement comes from using the celebrity regularly over
time. Such repetition both strengthens the associative link for those consumers already
aware of the of the celebrity endorsement as well increase the pool of consumers who
begin to become aware of the link between the brand and the celebrity. If companies
don’t use the chosen celebrity consistently it will weaken the benefit from using the
endorser (ibid.).
The source attractiveness model
The source attractiveness is a model that has been explained by several authors
through the years. The source attractiveness model posits that the acceptance of a
message depends on the attractiveness of the source, which in turn depends on three
central attributes: familiarity, likeability, and similarity. Familiarity is the audience’s
knowledge of the source because of prior exposure to it. Likeability is the audience’s
positive regard for the source because of its physical appearance and behaviour and
similarity is the resemblance between the source and the receiver. The higher a source
rates on each of these attributes, the more acceptable and attractive it will be. There
are two explanations to how attractiveness affects the message acceptance:
Identification and conditioning. Identification means that the receiver off the message
begins to see himself or herself as similar to the source because of the latter’s
attractiveness. Because of that the receiver becomes willing to accept the opinions,
beliefs, attitudes or behaviour of the source. Conditioning means that the endorser is
an unconditioned stimulus, and the brand or product would be the conditioned
stimulus. When the endorser is repeatedly associated with the brand, the attractiveness
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of the endorser is supposed to pass to the brand (Tellis, 1998; Kamins et al, 2001;
Kahle and Homer, 1985).
Match up
According to Till (1998) to create an effective endorsement between a celebrity and a
brand it is important that there is brand–celebrity congruency when it comes to
facilitate the development of an associative link. When there is a perceived fit
between the brand and celebrity, there is a greater probability of building an
associative link. Because a poor fit between celebrity and brand is suggested the
primary cause of failed celebrity endorsement. The greater the perceived fit between
the celebrity and the brand the more quickly the associated link between the two can
be expected to develop. The choice of celebrity should fit with the association the
brand either currently has or plausible could have. When the choice of celebrity fits
current associations, then the celebrity serves to reinforce existing associations. If the
associations/image of the celebrity fit the desired associations that the brand could
plausibly have, then the celebrity serves to create association for the brand. However
there is not only important that the celebrity has a fit towards the brand and image,
companies must also consider that the celebrity has a fit towards the target audience.
It is important that the associations the company believes the celebrity has are
associations that the brand’s target audience actually has of the celebrity. Different
groups of people may have different associations for any given celebrity. It is
therefore necessary, to test the possible use of any celebrity with the brand’s target
group to ensure that the image/associations the celebrity has in the minds of the target
audience are meaningful, positive and consistent with the company’s expectations
(Till, 1998).
Overshadowing
According to Till (1998) the way to decrease the chances of overshadowing the
advertising executions should be single-minded in communicating the brand-celebrity
pairing. The brand and the celebrity should be the two strongest elements in the ad.
Ad executions which are cluttered with superfluous executional devices, distract from
the brand celebrity pairing is weakening the potency of the celebrity endorser. The
like hood of forming an associative link between the celebrity and the brand increases
when there are few other competing elements in the advertisement (ibid.).
[Bhanu Pratap Singh - IISWBM] Page 32
Overexposure
According to Till (1998), when celebrities are endorsing several products blocking
can occur which refers to the reluctance of a favourable stimulus (celebrity endorser)
to form a strong link with another stimulus when the favourable stimulus (celebrity
endorser) already has a strong association with a previous stimulus. When a celebrity
already is strongly associated with a brand they will not form associative links with
other brands. Therefore companies should avoid using celebrities that are already
endorsing several other brands to which they have a strong connection (ibid.).
Extinction
To reduce the risk of extinction companies should expand their use of celebrity
endorsement. Because it is unrealistic to expect that every time a consumer
encounters a brand the celebrity endorser image also will be present. Therefore
companies should work to get endorsers more integrated into the marketing mix.
Although most commonly used in advertising, celebrity endorsers can be effective in
promotion activities, such as giving away related items or trips, which tie into the
celebrity. The celebrity could also be used at large trade shows, national sales
meetings and other significant publicity events (Till, 1998 Ziegel 1983).
Financial risk
Companies must decide how cost effective their choice of celebrity is. The celebrity
with the highest potential is often also the most expensive one. Companies should
therefore look for a lesser-known person that fits into the message of the brand and
appeals to the target audience (Tellis, 1998).
Q-ratings
According to Miciak and Shanklin (1994) it is important that consumers sees the
celebrity as person with credibility and attractiveness and that the celebrity is an
effective media person. For celebrity to be credible, consumers must perceive them to
be trustworthy and have the expertise to speak about a product or service. The
reasoning is that the more credible and attractive a celebrity is the more persuasive he
[Bhanu Pratap Singh - IISWBM] Page 33
or she will be as endorser. Therefore companies are starting to use the Q- value to
estimate how good their brand is together with a specific celebrity endorser.
According to Shimp (1997) to find out how effective an endorser might be
questionnaires are sent out to individuals that are asked to answer two simple
questions: Have you heard of this person? The second question is: If you have, do you
rate him or her; poor, fair, good, very good or one of your favourites? The Q rating is
then calculated by dividing the percentage of the total sample rating the celebrity ‘as
one of your favourites’ by the percentage of sample who knows the celebrity (Shimp,
1997). A celebrity may not be widely recognised but he or she can still attain a high Q
rating as individuals who do recognise the celebrity also likes the celebrity. On the
other hand a celebrity may be widely recognised but still have low Q rating since the
respondents may not like them. The Q rating answers the question of popularity
among those familiar with him or her (ibid.). According to Rossiter and Percy (1987)
Q ratings are a good way for companies to avoid hiring big celebrities that aren’t
popular among their target audience. This also makes Q ratings a good method to
filter celebrities for a company (ibid.).
The possible discrepancies in the present system of endorsement could be as follows:
• Owing to unavailability of dates, long-term contracts have to be signed whereas the
life of the celebrity may not always be long term.
• The celebrities start becoming bigger than the brand.
• The celebrity is at best company chosen but never customer chosen.
• The celebrity may begin to lose value due to inappropriate choice of endorsed product
or failure of product.
[Bhanu Pratap Singh - IISWBM] Page 34
Chapter two
Review of Literature
2.1 Celebrity Endorser
The term celebrity refers to an individual who is known to the public (actor figure,
entertainer, etc.) for his or her achievements the areas other than that of the product class
endorsed (Friedman and Friedman, 1979). According to McCracken's (1989) definition, a
celebrity endorser is an individual who enjoys public recognition and who uses this
recognition on behalf of a consumer good by appearing with it in an advertisement
(marketing communication).
Celebrities, live and in person, get most folks' pulses pounding, their palms sweating, their
minds racing to calculate whether it would be cool or gauche to approach them, to mention
the obvious fact that we recognize them, that we know far more about them than they know
about us, and that this makes them seem infinitely superior to us (Ferris 2004).
2.2 Impact of Celebrity Endorsement
Several studies have examined consumers’ response to celebrity endorsements in
advertising. Findings show that celebrities make advertisements believable and enhance
message recall (Friedman and Friedman, 1979). Ultimately celebrity endorsers are believed
to generate a greater likelihood of customers choosing the endorsed brands (Kahle and
Homer, 1985). Thus, the use of celebrity endorsements is an advertising strategy that should
enhance the marginal value of advertisement expenditures and create brand equity by
means of the “secondary association” of a celebrity with a brand (Keller, 1993).
Celebrity endorsers have been found to be more effective in promoting products with high
psychological and/or social risk than products with high financial and performance risks
(Mehulkumar, 2005). In most celebrity endorsement research, the products which were
investigated were classified in different product categories 1998, 2000), or unknown brands
(Atkin and Block 1983; Kamins et al. 1989). In (Kamins, 1990; Ohanian, 1990, Walker et al.
[Bhanu Pratap Singh - IISWBM] Page 35
1992), fictitious brands practice, celebrity endorsement is used for existing brands, which
means that it can influence the brand image. A celebrity endorser used in an advertisement
can be interpreted as a reference group. Shiffman and Kanuk (2006) define reference group
as any person or group of persons that serves as a point of comparison for an individual by
communicating values, attitudes and providing a specific guide for behavior. An aspiration
group is a derivative of the reference group: in this case, the consumer does not belong to
the group but is willing to be associated with it. To become 'associated' with this group,
consumers are willing to behave like members of the aspiration group. This means that
consumers are trying to behave in the same manner, e.g. try to use the same symbolic
meanings – of the aspiration group. This means that a celebrity endorser can be interpreted
as the 'personality' of the reference group. The reference group 'rich and famous', which
often correspond with the way the ‘celebrities’ live, is frequently indicated as an aspiration
group of which consumers like to be part (De Pelsmacker et al., 2004).
Erdogen (1999) says when global campaigns are organized celebrities who are appropriate
for a global target audience are used. General celebrity endorsement influences the feelings
of the consumers and can also influence the attitude consumers have towards the
advertisement and attitude towards the brands, which can increase the purchase intentions
and, consequently, increase sales. Potential advantages of utilizing celebrity endorsers are
that it can increase attention, polish the image of the brand, especially when a brand will be
introduced in the market or are positioning of a brand will take place (De Pelsmacker, 2004).
Companies invest large sums of money to align their brands and themselves with celebrity
endorsers. Research has shown that because of the fame of celebrities, they do not only
create and maintain attention of the consumers but they also achieve high message recall
(Ohanian, 1991; O'Mahony and Meenaghan, 1997). However, companies have limited
control over the celebrity's persona which can also result in high risk and “no gain”
situations (e.g. the “scandals” surrounding celebrities like Michael Jackson, Kate Moss,
Britney Spears, and Paris Hilton). As a result, companies build characters (using people who
are not celebrities) which are congruent with their brands and target-audiences, and ensure
hat these characters is endorsing only one particular product. Tom et al. (1992) found that
created endorsers were more effective in creating a link to the product than celebrity
endorsers. Agrawal and Kamakura (1995) assess the impact of celebrity endorsement
[Bhanu Pratap Singh - IISWBM] Page 36
contracts on the expected profitability of a firm by using event study methodology. Their
approach assumes that the announcement of a celebrity endorsement contract, usually
widely publicized in the business press, is used as information by market analysts to
evaluate potential profitability of endorsement expenditures, thereby affecting the firm’s
expected return. The result of analysis of 110 announcements of celebrity endorsement
contracts showed on average the impact of these announcements on return is positive and
suggest that celebrity endorsement contracts are generally viewed as a worthwhile
investment in advertising.
The primary interpersonal privilege of celebrity is attention. Celebrities matter to the rest of
us, even if we would have no interest in them were they not celebrities. The most mundane
experiences of celebrities' lives attract attention, not just by fans but also by anyone who
happens to recognize their fame. Players on a successful college basketball team, for instance,
develop a "glorified self" through the attention that they receive on and off campus. Without
this attention, they would just be everyday college students, only taller (Adler and Adler
1989). A study of students' relationships with celebrities found that ordinary people "seek out
further information about celebrities' lives for vicarious pleasure" (Leets et al. 1995). All this
attention and information turns celebrities into "intimate strangers" (Schickel 1985), persons
with whom we have unilateral "parasocial" relationships (Giles, 2000; Horton and Wohl,
1956). A neurological study found that celebrities both their image and their printed name
trigger dedicated fast-access memory cells in the brain, at least among a sample of eight
epileptics in Los Angeles who had sensors implanted in their brains to track seizures (Quian
Quiroga et al. 2005).
In ‘The Relative Effectiveness of Celebrity Endorsement for Beauty, High- and Low
Involvement Product Print Advertisements’, Irene Roozen (YEAR) professor in University of
Antwerp, Brussels states two research projects. In the first research project, the matches
between the products concerned and a number of celebrities were analyzed. In the second
research project advertisements with the best and worst product-celebrity matches,
respectively, are compared with advertisements with a picture of an anonymous person and
advertisements without a celebrity or picture. The research results do not indicate that
celebrity endorsement is effective. This result was also found for the advertisements with the
endorsement of celebrities who were found to match best with the products at hand. These
results, therefore, suggest that the considerable amounts invested in celebrity endorsement
could better be allocated to other advertisement ends.
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By analyzing the influence of celebrity endorsement on the brands and or products shown in
the advertisements, it is important to make a classification between high and low
involvement of the advertisement. The Elaboration Likelihood theory (Petty et al. 1981)
shows that attitudes change through different routes. Under conditions of high involvement,
where elaboration is likely, the attitude change travels trough a 'central route' in which a
person exercises 'diligent' consideration of information that (s)he feels is central to the true
merits of a particular attitudinal position. For low involvement, low elaboration likelihood,
the attitude change travels through a 'peripheral route' in which various simple cues
associated with the issue, object, or context exert optimal influence. This means that under
conditions of high involvement, arguments but not celebrities influence attitudes, whereas
under conditions of low involvement, celebrities but not arguments influence attitudes.
However, Kahle and Homer (1985) have shown that the involvement effect is sensitive to
variation and that the physical attractiveness of a celebrity affects the attitude change
process. A psychically of physically attractive model exudes sensuality, can increase arousal
which can affect information processing. For example, in the case of a stunningly attractive
person who claims to use a beauty product the product in question may be assumed to be
an element of the person’s beauty formula. Information concerning attractiveness is
conveyed more quickly than other information, even if it is not highly probative .The
categorization of products into low and high involvement is based on the risk perceptions
consumers have when purchasing products (which is significantly higher for high
involvement products). Risk perceptions can be classified into four categories (Friedman and
Friedman, 1979): (1) Psychological risk: the fit between product image and self image, (2)
Financial risk: associated with the price of the brands/products, (3) Social risk: fear of not
belonging or not taking part to/in a reference group as a result of purchasing the 'wrong'
product/brand, (4) Operational risk: risk of buying a product that does not operate the way
it should do. Another study by Dean (1999) tested the effects of three advertising cues-
third- party product endorsements, brand popularity and event sponsorship to affect the
consumer perceptions with regards to product quality, uniqueness, manufacturer esteem
and corporate citizenship. Mehta (1994) has found that there were no significant differences
for the concepts ‘attitudes towards the advertisement’, ‘attitude towards the brand’ and
‘intentions to purchase endorsed brands’ between celebrity and non-celebrity endorsement
advertisements. When confronted with non celebrity endorsers, consumers were
[Bhanu Pratap Singh - IISWBM] Page 38
significantly more focused on the brand and its features, whereas with celebrity endorsers
the subjects were significantly more concentrated on the celebrity in the advertisement.
However, Atkin and Block (1983) and Petty et al. (1983) have found the opposite results of
Mehta (1994).
2.3 Models to analyze Celebrity Endorsement
Two general models are often used to analyze celebrity endorsement: the source credibility
model and the source attractiveness model. Furthermore, a description of the endorsed
brands and the match between the celebrity and the product is presented.
2.3.1 Source Credibility Model
Source credibility is used to imply a communicator's positive characteristics to affect the
receiver's acceptance of a message. The source credibility model of Hovland et al. (1953)
analyses the factors leading to the perceived credibility of the communicator. Hovland et al.
(1953) concluded that the two factors trustworthiness and expertise underscore the
concept of source credibility. Trustworthiness is defined as the degree of confidence in the
communicator's intent to communicate the assertions he considers most valid. Research
shows that when a communicator is perceived to be highly trustworthy, an opinionated
message is more effective than a non-opinionated communication in producing attitude
change (Ohanion, 1990). Expertise is defined as the extent to which a communicator is
perceived to be a source of valid assertions (Hovland, et al. 1953). Already in the early
eighties, research results haveindicated that in a selling context, an expert salesperson
induced a significantly higher number of customers to purchase than did a non-expert
salesperson (Woodside and Davenport, 1974).
2.3.2 Source Attractiveness Model
The source attractiveness model is a component of the 'source valence' model presented by
McGuire (1985). The attractiveness model contends that the effectiveness of a message
depends on source's 'familiarity', 'likeability', 'similarity' and 'attractiveness' to the
respondent. Attractiveness has become an important factor through the increasing use of
celebrities as endorsers for products, services and/ or social causes (Patzer, 1983; Ohanion,
1990). Most television and print ads use physically attractive people. Already in the eighties,
research has shown that psychically attractive communicators are more successful in
changing beliefs than unattractive communicators (Chaiken, 1979).
2.4 Match between celebrity and brand / product
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Research has shown that not only the classification of the product, source credibility and
source attractiveness can influence the effectiveness of the celebrity endorser but also the
match between the brand and or product with the celebrity. There should be congruence
between the celebrity and the product in terms of characteristics such as image, expertise
(Till and Busler, 1998; 2000) or attractiveness (Baker and Churchill, 1977; Kahle and Homer,
1985). The celebrity-product match model states that attractive endorsers are more
effective when promoting products used to enhance one's attractiveness (Kamins, 1990)
and that the impact will be not significant in the case of a product that is unrelated to
“attractiveness”. Kahle and Homer (1985) found that in the case of attractiveness related
products the use of physically attractive celebrities increased message recall; product
attributes, and purchase intention. In 1998, Till and Busler have examined attractiveness
versus expertise as a match-up factor and found a general attractiveness effect on brand
attitude and purchase intention but no match-up effect was found based on attractiveness.
They proposed that expertise is more appropriate for matching products with celebrity
endorsers than attractiveness. Walker et al. (1992) concluded that meanings and images are
transferred from the celebrity endorsers to the product.
McCracken (1989) has addressed the endorsement process from a cultural perspective.
According to ‘meaning transfer model’, the symbolic properties of the celebrity endorser
serve the endorsement process by taking on the meanings that then carry from ad to ad.
The source models (attractive and credibility) do not explain why a celebrity fails as an
endorser for one brand while being successful for another brand. McCracken (1986)
explains cultural meanings as something inherent and resident in the culturally constituted,
psychical, and social world and then move through a conventional path to individual
consumers where it is transferred through the efforts of the consumer. This model conveys
the celebrity is a persuasive communicator with a set of fictional roles and when consumers
respond to celebrity specific characteristics they are responding to the particular set of
meanings of the celebrity. The effectiveness of the celebrity depends upon the meanings
the celebrity brings to the endorsement process. He also suggests that the role of the
celebrity is not only being attractive or credible but also the celebrity has to make up certain
meanings the consumer finds compelling and useful.
[Bhanu Pratap Singh - IISWBM] Page 40
Figure 1: The Meaning Transfer Model
Source: McCracken, 1989.
In the initial stage of this model, the meanings generated through political campaigns,
athletic achievements and performances and/or distant movie performances, reside in
celebrities themselves. In the second stage, meanings are transferred to the product
through advertisement and the endorsement process. In the last stage, the meanings are
transferred from the product to the consumer where the properties of the product become
the properties of the consumer.
Sandhir Sharma, professor at Punjab College of Technical Education, Ludhania carried out a
survey in Ludhiana, taking sample size of 100 viewers. The study contained the sample size
of 100, all the people of the age of 18 years and above. The demographic profile of the
respondent included 23 Businessmen, 35 service class people, 30 students, 6 professionals,
4 housewives and 2 retired persons. Out of 100 respondents, 56 were males and 44 were
females. The results showed that 54% of the respondents feel that celebrities cast an impact
through the advertisements while 46% do not feel any impact of celebrities. Out of 54
[Bhanu Pratap Singh - IISWBM] Page 41
respondents, 42 feel that celebrities attract attention towards an ad, 15 of them feel that
they arouse interest in the product. 12 respondents are of the view that celebrities build a
desire to have the product and only 6 respondents only feel that celebrities initiate an
action to buy that product. The study also revealed that majority of the respondents i.e.
63% get attracted more towards Film Stars than any other celebrity. Majority of the
respondents felt they would continue buying same goods from the market irrespective of
the act of advertising the same product through any specific celebrity. The study found that
very few respondents (37%) have bought product(s) under the influence of any celebrity
which means that a consumer wants something more in an advertisement than a celebrity
to be influenced enough to buy the product.
Celebrity endorsement is always a two-edged sword and it has a number of positives— if
properly matched it can do wonders for the company, and if not it may produce a bad image
of the company and its brand. Mukherjee (2009) has evaluated associated factors that
contribute to the success or failure of the endorsement. Celebrity endorsement has been
established as one of the most popular tools of advertising in recent time. It has become a
trend and perceived as a winning formula for product marketing and brand building. It is
easy to choose a celebrity but it is tough to establish a strong association between the
product and the endorser. While the magnitude of the impact of celebrity endorsement
remains under the purview of gray spectacles, this paper is an effort to analyze the Impact
of celebrity endorsements on brands. The study aimed at examining the relationship
between celebrity endorsements and brands, and the impact of celebrity endorsement on
consumer's buying behaviour as well as how consumer makes brand preferences. The
author proposes a 20 point model which can be used as blue-print criteria and can be used
by brand managers for selecting celebrities and capitalizing the celebrity resource through
360 degree brand communication which, which he considers the foundation of the impact
of celebrity endorsement. The major factors that are having maximum impacts of successful
endorsement are a) Consistency and long-term commitment, b) Prerequisites to selecting
celebrities, c) Celebrity–brand match, d) Constant monitoring, e) Selecting unique
endorsers, f) Timing, g) Myopic endorsement strategy, h) Brand over endorser i) Celebrity
endorsement is just a channel, j) Over dependency on celebrity, k) The celebrity trap, l)
Trademark and legal contracts, m) Overall Management, n) Investment, o) The Brand
endorsement team, p) Feel Cultural Sensitivity and q) Celebrity ROI.
[Bhanu Pratap Singh - IISWBM] Page 42
Chapter Three
RESEARCH METHODOLOGY
3.1 Need for Study
The organizations are using the celebrity endorsers for promoting their products. They choose
a person a face who may best- fit with the image of their product and brand as well. At the
same time, there is need to know the perceptions of the viewers and consumers. This helps in
estimating the impact of particular celebrity endorser on the consumer buying behavior and
final purchase decision. The importance of appropriate celebrity endorser for the brand or
product resulted in the need for the study.
3.2 Objectives of the study
This study had the following objectives-
1. To study the significance of celebrity endorsement.
2. To analyze the use and effectiveness of celebrity endorsers.
3. To measure the effectiveness, attractiveness and credibility of certain celebrities.
4. To study the various dimensions of celebrity endorsers.
5. To establish a relationship between consumer behaviour and celebrity endorsement.
6. To view the companies and endorsers perspectives towards celebrity.
3.3 Research Methodology
3.3.1 Data Collection
Two kinds of data which has been gathered and used for carrying out this research are
1. Secondary Data
2. Primary Data
Secondary Data has been gathered to gain better understanding of the topic. It has been
collected from journals, magazines, text books and online resources. Primary Data has been
collected through a questionnaire.
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3.3.2 Research Design
The research is descriptive in nature. It is based on survey technique.
3.3.3 Sampling Technique
Respondents were selected randomly. They have been categorized in three categories: 18- 24,
25- 34 and 35 or above. Data has been collected from various age groups so that view of
general public could be obtained.
3.3.4 Sampling Unit
The sampling unit consists of graduate students of different departments of Aligarh Muslim
University, Aligarh. The Faculty of Management Studies and Research, Zakir Hussain
College of Engineering, Faculty of Arts and Faculty of commerce were visited collecting
data.
3.3.5 Sample Size
The questionnaires were distributed to 150 people. But since few of the targeted respondents
did not respond, total responses received were 127.
3.3.5 Research Instrument
A questionnaire has been used to see the effect of celebrity on consumer purchasing
decisions. It also helps in generating the view of respondents regarding the few celebrities
which are used for certain products. To assess the ratings for particular celebrities, categorical
scale has been used. The responses of the respondents were recorded as per following scale-
Excellent, Good, Average, Poor and Unsure.
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Steps in Data Collection
3.4 Managerial Implications
The study will have certain managerial implications such as:
1. The study will be useful to scholars, executives and managers interested in the area of
celebrity endorsement and advertising.
2. It highlights the perception of the targeted respondents towards the celebrities used for
various products.
3. It may provide an insight to the studied brands regarding the perception of viewers.
4. The study may prove helpful to the organizations who are planning to choose a
celebrity for their brands or products.
3.5 Limitations
1. The response could not be obtained from all the respondents targeted.
2. Some respondents were not forthcoming and were reluctant in giving responses.
3. Paucity of time to conduct the study is another limitation.
4. The study has been conducted in one city. So the findings cannot be generalized.
[Bhanu Pratap Singh - IISWBM] Page 45
Literature Review/ Secondary Data Analysis
Sampling and Questionnaire Adaptation
Collection of questionnaires
Distribution of questionnaires
Compilation and Computation of responses
Chapter Four
DATA ANALYSIS
This chapter deals with the analysis of the responses collected by means of questionnaire. The
analysis been done on the basis of age and gender. Mean values of the respondents are calculated.
1. What are the most motivating factors when you plan to buy mobiles or cars?
Table 1
Discounts and
offers Fewer prices
Latest models and
trends Total
Age 18-24 28 11 74 113
25-34 4 2 7 13
Total 32 13 81 126
Table 1 show 28 respondents belonging to age group 18- 24 consider discounts and offers as
motivating factors where as latest models and trends motivates an average of 74 respondents from the
same age group. 7 respondents of age group 25- 34 agree with latest models and trends as a
motivating factor to purchase mobiles or cars.
If we have a look at the results gender wise, 47 males are motivated by latest models and trends to buy
the product and only 11 males are motivated by fewer prices. 2 females are motivated by fewer prices
whereas majority, that 34 females are motivated by latest trends and models.
Table 2
Discount and
offers Fewer prices
Latest models and
trends Total
Gender Male 17 11 47 75
Female 15 2 34 51
Total 32 13 81 126
Table 3 shows that 10.2 percent of respondents are motivated by fewer prices whereas 63.8 percent of
respondents are motivated by latest models and trends. Discount and offers are able to motivate
around 25 percent of the respondents.
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Table 3
Motivating Factors Frequency Percent
Discount and offers 32 25.40
Fewer prices 13 10.32
Latest models and trends 81 64.28
Total 126 100.0
2. Do you believe products specifically advertised by the celebrities are of good quality?
Table 4
Yes No 50% Not sure Total
Age 18-24 11 38 55 9 113
25-34 3 6 2 2 13
Total 14 44 57 11 126
Table 4 shows 11 males in age group 18- 24 believe that products advertised by the celebrities are of
good quality, whereas 38 in same age group do not believe the same.
Table 5
Yes No 50% Not sure Total
Gender Male 9 27 31 8 75
Female 5 17 26 3 51
Total 14 44 57 11 126
17 females say the products promoted by celebrities do not have good quality, whereas, 26 females
believe that the product is only 50% consists of good quality. 27 males believe that the products
promoted by celebrities are of not good quality and only 9 males believe reverse.
Table 6 shows a larger view of the responses. It shows that 11 percent of total respondents believe that
the products endorsed by the celebrities are of good quality, whereas 34.92% of respondents consider
such products below quality. 45.24% of respondents say 50% they have good quality and rest of the
respondents that is 8.73 % are not sure.
Table 6
Responses Frequency Percent
Yes 14 11.11
No 44 34.92
50% 57 45.24
Not sure 11 8.73
Total 126 100
[Bhanu Pratap Singh - IISWBM] Page 47
Chart 1
3. What is the most persuading factor to purchase the following products?
a) Motor VehicleTable 7
brand name Celebrity Luxury Self esteem Total
Age 18-24 59 8 25 21 113
25-34 8 2 0 3 13
Total 67 10 25 24 126
59 respondents of age group 18- 24 consider brand name as the most persuading factor to purchase the
motor vehicle. 25 and 21 respondents believe it is the luxury and self- esteem respectively which act
as most persuading factor to buy motor vehicle. 8 respondents in age group 25- 34 believe it’s the
brand name which persuades them, whereas only 2 consider celebrity as the persuading factor to
purchase motor vehicle.
Table 8
brand name Celebrity Luxury Self esteem Total
Gender Male 38 6 14 17 75
Female 29 4 11 7 51
Total 67 10 25 24 126
Table 8 shows 38 male respondents believe brand name acts a persuading factor to purchase motor
vehicle, whereas only 6 male consider it’s the celebrity who is endorsing the product.
[Bhanu Pratap Singh - IISWBM] Page 48
Table 9
Dimensions Frequency Percent
Brand Name 67 52.8
Celebrity 10 7.9
Luxury 25 19.7
Self Esteem 24 18.9
Total 126 99.2
Table 9 shows only 19.7% and 5.8% of the respondents consider luxury and brand name respectively,
as the most persuading factor to purchase a motor vehicle.
Chart 2
b) Clothing
Table 10
brand name Celebrity status cost Total
Age 18-24 59 8 25 21 113
25-34 8 3 0 2 13
Total 67 11 25 23 126
According to 59 respondents in the age group 18- 24 consider brand name is the most persuading
factor while purchasing the clothing. Table 10 shows none of the respondents in age group 25- 34
none agree to that status is the persuading factor to purchase clothing.
Table 11
brand name celebrity status cost Total
Gender Male 46 6 13 10 75
Female 21 5 12 13 51
Total 67 11 25 23 126
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Table 11 exhibits that only 10 males think that cost is a persuading factor to purchase clothing,
whereas 46 males think it the brand name which persuades them to purchase clothing.
Table 12 shows around 52% of the total respondents believe brand name is the most persuading factor
to buy clothing, whereas, only 8.7 % of total respondents consider celebrity as the most persuading
factor to purchase clothing.
Table 12
Dimensions Frequency Percent
brand name 67 52.8
celebrity 11 8.7
status 25 19.7
cost 23 18.1
Total 126 99.2
Chart 3
c) Food Products
Table 13
celebrity
attractive
package quality brand name Total
Age 18-24 10 7 87 9 113
25-34 1 1 10 1 13
Total 11 8 97 10 126
[Bhanu Pratap Singh - IISWBM] Page 50
The above results show that 87 respondents of age group 18-24 believes quality is the most
persuading factor to purchase the food products, whereas only 7 respondents consider attractive
packaging as the most persuading factor.
Table 14
celebrity
attractive
package quality brand name Total
Gender Male 8 4 57 6 75
Female 3 4 40 4 51
Total 11 8 97 10 126
Table 14 shows 57 male respondents consider quality as the most persuading factor to buy food
products. 40 females consider quality as the most persuading factor to purchase food products
whereas; only 3 females consider that celebrity persuades them to purchase food products.
Table 15 shows around 76% of total respondents consider quality as the most persuading factor to
purchase food products. Only 6% of the respondents believe attractive packaging is the reason.
Table 15
Dimensions Frequency Percent
Celebrity 11 8.7
Attractive Package 8 6.3
Quality 97 76.4
Brand name 10 7.9
Total 126 99.2
Chart 4
[Bhanu Pratap Singh - IISWBM] Page 51
4. Companies are investing large amounts of money for using celebrities; do you think its
helping them to increase their total revenue?
Table 16
Yes No Don't know Total
Age 18-24 78 21 14 113
25-34 10 1 2 13
Total 88 22 16 126
According to 78 respondents of age group 18-24, companies investing large amount of money for
celebrity endorsement are benefitted by increase in total revenue. 10 respondents of age group 25-34
believes that celebrity endorsement do help in increase in total revenue of the organization, whereas 1
respondent don’t believe that. Table 17 shows 54 males say yes when asked if they believe that
celebrity endorsement help in increasing revenue of organization, whereas 15 say no. 34 females say
yes to the same question whereas, 7 females say no.
Table 17
Yes No Don't know Total
Gender Male 54 15 6 75
Female 34 7 10 51
Total 88 22 16 126
Table 18
Dimensions Frequency Percent
Yes 88 69.3
No 22 17.3
Don't know 16 12.6
Total 126 99.2
In table 18, around 69% of the total respondents do believe that organizations are benefitted by
celebrity endorsement, whereas, around 17% say no the same thing.
[Bhanu Pratap Singh - IISWBM] Page 52
Chart 5
5. Does the presence of mega star like Shah Rukh Khan, Amitabh Bachchan or Aishwarya Rai
in an advertisement encourage you to purchase the product or service?
Table 19
Yes No Not sure Total
Age 18-24 36 57 20 113
25-34 3 8 2 13
Total 39 65 22 126
Table 19 shows that 36 respondents falling in age group 18- 24 believe that mega stars like Shah
Rukh Khan, Amitabh Bachchan or Aishwarya Rai in an advertisement encourage them to purchase
the product or service, whereas 57 do not believe this. The age group 25- 34 has only 3 respondents
considering these mega stars in an advertisement encouraging to purchase the product or service,
while 2 are not sure.
Table 20
Yes No Not sure Total
Gender Male 26 36 13 75
Female 13 29 9 51
Total 39 65 22 126
[Bhanu Pratap Singh - IISWBM] Page 53
26 male respondents believe mega stars like Shah Rukh Khan, Amitabh Bachchan or Aishwarya Rai
in an advertisement encourage them to purchase the product or service, while 36 males say no to it. 13
females are also encouraged by the same.
Table 21 shows around 30% of total respondents say they are encouraged by presence of mega stars in
advertisement to purchase a product or service, while 51.6% of total respondents say they are not
encouraged by presence of mega stars in advertisements.
Table 21
Dimensions Frequency Percent
Yes 39 30.7
No 65 51.2
Not sure 22 17.3
Total 126 99.2
Chart 6
6. Do you believe the celebrities also use those products which they themselves endorse?
Table 22
Yes No Not sure Total
Age 18-24 19 69 24 112
25-34 0 10 2 13
Total 19 79 26 125
19 respondents falling in age group 18- 24 believe that celebrities also use those products which they
themselves endorse, while 69 respondents from same age group do not believe this. In age group 25-
34, there are no respondents who would believe that celebrities also use those products which they
[Bhanu Pratap Singh - IISWBM] Page 54
themselves endorse, but have 10 respondents who believe celebrities also use those products which
they themselves endorse.
Table 23
Yes No Not sure Total
Gender Male 12 47 14 74
Female 7 32 12 51
12 male respondents and 7 female respondents believe celebrities also use those products which they
themselves endorse whereas 47 male and 32 female respondents do not believe the same.
Table 24
Dimensions Frequency Percent
Yes 19 15.0
No 79 62.2
Not sure 26 20.5
Total 125 98.4
Table 24 shows only 15% of the total respondents believe that celebrities also use those products
which they themselves endorse, while around 62% of the total respondents do not agree with them.
Chart 7
7. What type of celebrity endorsement persuades you personally to purchase products?
Table 25
Age group Film star
Famous
personalities Cricketer Politician
18-24 39 54 14 4
25-34 4 7 1 0
Total 43 61 15 4
[Bhanu Pratap Singh - IISWBM] Page 55
Table 25 shows 39 respondents in age group 18- 24 are persuaded by films stars to purchase a
products, while 54 says famous personalities persuade them only 14 say they are persuaded by
cricketers. In other age group, only 1 respondent is persuaded by cricketer, 7 are persuaded by famous
personalities whereas none is persuaded by politician.
Table 26 shows 21 males and 22 female respondents are persuaded by film stars to buy products,
whereas 36 males and 25 females are persuaded by personalities. Cricketers are able to persuade 12
males and only 3 females, whereas politicians persuade only 3 males and 1 female respondent.
Table 26
Film star
Famous
personalities Cricketer Politician Total
Gender Male 21 36 12 3 73
Female 22 25 3 1 51
Total 43 61 15 4 124
Table 27
Table 27 shows 33.9% of total respondents are persuaded by film stars to purchase products, whereas,
only 3.1% of total respondents are persuaded by politicians.
8. Please rate the following celebrities as a brand endorser:
a) Aishwarya Rai for L’Oreal
Table 28
Dimensions Frequency Percent
Excellent 7 5.5
Good 24 18.9
Average 59 46.5
Poor 35 27.6
Total 126 99.2
Table 28 shows only 5.5% of the total respondents rate Aishwarya Rai an excellent brand endorser,
46.7% consider her an average brand endorser, while 27.6% rate her as a poor brand endorser.
[Bhanu Pratap Singh - IISWBM] Page 56
Dimensions Frequency Percent
Film star 43 33.9
Famous personalities 61 48.0
Cricketer 15 11.8
Politician 4 3.1
Total 124 97.6
b) Hrithik Roshan for Coca Cola and Hero Honda Karizma
Table 29
Dimensions Frequency Percent
Excellent 7 5.5
Good 20 15.7
Average 58 45.7
Poor 38 29.9
Total 126 99.2
Table 29 shows only 5.5% of the total respondents consider Hrithik Roshan for Coca Cola and Hero
Honda Karizma as an excellent brand endorser. 15.7% consider him as a good brand endorser,
whereas 45.7% consider him an average brand endorser.
c) Sushmita Sen for Olay Creams
Table 30
There are 21.3% of total respondents who rate Sushmita Sen for Olay Creams as good brand endorser.
38.6% rate her as an average brand endorser whereas only 3.9% rate her as excellent brand endorser.
d) Juhi Chawla for Kukure
Table 31
Dimensions Frequency Percent
Excellent 12 9.4
Good 17 13.4
Average 62 48.8
Poor 32 25.2
Total 126 99.2
Table 31 shows that Juhi Chawla is considered as an average brand endorser for Kurkure by 48% of
total respondents whereas only 9.4% of the total respondents consider as an excellent brand endorser
[Bhanu Pratap Singh - IISWBM] Page 57
Dimensions Frequency Percent
Excellent 5 3.9
Good 27 21.3
Average 49 38.6
Poor 42 33.1
Total 125 98.4
for Kurkure. 13.4% and 25.2% of the total respondents believe she is good and poor brand endorser
respectively.
e) Amitabh Bachchan for Cadbury choclates
Table 32
Dimensions Frequency Percent
Excellent 9 7.1
Good 19 15.0
Average 52 40.9
Poor 38 29.9
Total 125 98.4
Table 32 shows 29.9% of the total respondents consider Amitabh Bachchan as poor brand endorser
for Cadbury choclates whereas only 7.1% consider him as an excellent brand endorser for the same.
f) Shah Rukh Khan for Airtel and Pepsi
Table 33
Dimensions Frequency Percent
Excellent 2 1.6
Good 10 7.9
Average 57 44.9
Poor 56 44.1
Total 126 99.2
The above table indicates that equal percent of respondents consider Shah Rukh Khan as an average
and poor brand endorser for Airtel and Pepsi. Only 1.6% of the total respondents consider him as
excellent brand endorser, whereas 7.9% of total respondents consider him as good for the same.
g) Saif Ali Khan for Lays and Chevrolet
Table 34
Dimensions Frequency Percent
Excellent 5 3.9
Good 32 25.2
Average 43 33.9
Poor 44 34.6
Total 126 99.2
[Bhanu Pratap Singh - IISWBM] Page 58
In table 34, Saif Ali Khan comes out to be average brand endorser for Lays and Chevrolet as said by
33.9% of total respondents, whereas only 3.9% of total respondents consider him to be an excellent
brand endorser for the same.
h) Amir Khan for Tata Sky and Samsung
Table 35
Dimensions Frequency Percent
Excellent 2 1.6
Good 15 11.8
Average 47 37.0
Poor 61 48.0
Total 126 99.2
11.8% of the total respondents believe that Amir Khan is a good brand endorser for Tata Sky and
Samsung, whereas 37% of the total respondents consider him as an average brand endorser for the
same brands.
i) Katrina Kaif for Slice
Table 36
Dimensions Frequency Percent
Excellent 15 11.8
Good 16 12.6
Average 39 30.7
Poor 51 40.2
Total 125 98.4
The above table shows that 30.7% of the respondents consider Katrina Kaif as an average brand
endorser for Slice, whereas 11.8% of the respondents say she is an excellent brand endorser. 12.6% of
total respondents believe she is a good brand endorser for Slice.
j) John Abraham for Garnier and Castrol
Table 37
Dimensions Frequency Percent
Excellent 10 7.9
Good 27 21.3
Average 55 43.3
Poor 30 23.6
Total 126 99.2
[Bhanu Pratap Singh - IISWBM] Page 59
43.3% of the total respondents say that John Abraham is an average brand endorser for Garnier and
Castrol, whereas 21.3% of total respondents consider him good. 7.9% of the total respondents believe
that he is an excellent brand endorser for these two brands.
Table 38 and chart 8 below shows the mean scores of the respondents while rating the celebrities for
various brand.
Table 38
Celebrities N Mean
Aishwarya_L'Oreal 126 2.95
Hrithik_Coke_Karizma 126 2.96
Sushmita_Olay 125 2.99
Juhi_Kurkure 126 2.86
Amitabh_Cadbury 125 2.84
Shahrukh_Airtel_Pepsi 126 3.31
Saif_Lays_Chevrolet 126 2.97
Amir_TataSky_Samsung 126 3.31
Katrina_Slice 125 2.94
John_Garnier_Castrol 126 2.77
Chart 8
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9. What do you value the most when you purchase a product?
Table 39
Price of the
product
Celebrity
Endorsement
Quality of the
product
Value for
money
Gender Male 10 1 49 15 75
Female 5 2 36 8 51
Total 15 3 85 23 126
Table 39 indicates that 10 males say they value the price of the product the most when they
purchase a product, while only one male say its celebrity endorsement which they value. 36
females consider price of the product which they value the most, whereas only 2 females think
they value celebrity endorsement. Table 40
Dimensions Frequency Percent
Price of the product 15 11.8
Celebrity Endorsement 3 2.4
Quality of the product 85 66.9
Value for money 23 18.1
Total 126 99.2
Table 40 shows 11.8% of respondents value price of the product whereas only 2.4% of the
respondents value celebrities when they purchase a product. The quality of product is valued by
66.9% of the respondents.
Chart 9
10. Does celebrity endorsement help in brand promotion?
[Bhanu Pratap Singh - IISWBM] Page 61
Table 41
Yes No Not sure
Gender Male 63 7 4 74
Female 37 11 3 51
Total 100 18 7 125
Table 41 shows 63 males say celebrity endorsement help in brand promotion while 7 males say it does
not help. 37 females say celebrity endorsement help in brand promotion.
Table 42
Dimensions Frequency Percent
Yes 100 78.7
No 18 14.2
Not sure 7 5.5
Total 125 98.4
According to table 2, 78.7% of total respondents consider that celebrity endorsement assist in brand
promotion, whereas 14.2% of the total respondents feel its not so.
Chart 10
11. Does it affect company if celebrity’s image defer?
The table below shows 49 males and 34 females say that if celebrity’s image defer, the company gets
affected, whereas 18 males say that company is not affected if celebrity’s image defers.
[Bhanu Pratap Singh - IISWBM] Page 62
Table 43
Yes No Not sure Total
Gender Male 49 18 8 75
Female 34 4 13 51
Total 83 22 21 126
Table 44
Dimensions Frequency Percent
Yes 83 65.4
No 22 17.3
Not sure 21 16.5
Total 126 99.2
In table 44, 65.4% of the total respondents believe that company gets affected if celebrity’s image
defers whereas 17.3% of the total respondents believe the company is not affected if celebrity’s image
defers. 16.5% of the total respondents are not sure of their responses.
Chart 11
12. What means of advertisements persuades you the most to purchase a product?
[Bhanu Pratap Singh - IISWBM] Page 63
Table 45
Television Radio Newspaper Magazines Internet
Gender Male 51 3 5 5 10 74
Female 39 0 2 2 8 51
Total 90 3 7 7 18 125
Table 45 shows 51 male and 39 female respondents television is the means of advertisements which
persuades them the most. Only 3 male respondents believe its radio which persuade them the most.
Table 46
Dimensions Frequency Percent
Television 90 70.9
Radio 3 2.4
Newspaper 7 5.5
Magazines 7 5.5
Internet 18 14.2
Total 125 98.4
Table 46 shows 70.9% of total respondents believe television is the means of advertisements which
persuades them the most. 14.2% of the total respondents are most persuaded by internet, whereas only
5.5% of the total respondents by newspapers and magazines.
Chart 12
13. What do you think is the reason for the companies to choose celebrity endorsement for
promoting their products?
[Bhanu Pratap Singh - IISWBM] Page 64
The table below shows 33 males and 16 females believe that the reason for the companies to choose
celebrity endorsement for promoting their products is easy recognition; whereas, 4 males and 4
females think it is so because the companies cannot think of any new idea.
Table 47
Easy
recognition of
product
Can't generate
new ideas
To be able to
increase sales
and profit
To compete
strongly
Gender Male 33 4 29 9 75
Female 16 4 14 17 51
Total 49 8 43 26 126
Table 48
Dimensions Frequency Percent
Easy recognition of product 49 38.6
Can't generate new ideas 8 6.3
To be able to increase sales and profit 43 33.9
To compete strongly 26 20.5
Total 126 99.2
The above table shows 38.6% of total respondents believe that companies choose celebrity
endorsement because they feel the customers will easy recognize the product, whereas 33.9% of total
population says it is so, so that companies may able to increase their sales and profits.
Chart 13
[Bhanu Pratap Singh - IISWBM] Page 65
Chapter Five
CONCLUSIONS
On the basis of analysis, the conclusions have been drawn in this chapter. The conclusions
are discussed below on the basis of age, on the basis of gender and also on the basis of the
ratings given to the celebrity endorser as given by the respondents. This is brief discussion of
directions for future study as well in latter part of this chapter.
[Bhanu Pratap Singh - IISWBM] Page 66
5.1 The conclusions are as follows:
5.1.1 On the basis of Age
1. 28 respondents belonging to age group 18- 24 consider discounts and offers as
motivating factors where as latest models and trends motivates an average of 74
respondents from the same age group. 7 respondents of age group 25- 34 agree with
latest models and trends as a motivating factor to purchase mobiles or cars.
2. 11 respondents in age group 18- 24 believe that products advertised by the celebrities
are of good quality, whereas 38 in same age group do not believe the same.
3. 59 respondents of age group 18- 24 consider brand name as the most persuading
factor to purchase the motor vehicle. 25 and 21 respondents believe it is the luxury
and self- esteem respectively which act as most persuading factor to buy motor
vehicle. 8 respondents in age group 25- 34 believe it’s the brand name which
persuades them, whereas only 2 consider celebrity as the persuading factor to
purchase motor vehicle.
4. According to 59 respondents in the age group 18- 24 consider brand name is the most
persuading factor while purchasing the clothing. Table 10 shows none of the
respondents in age group 25- 34 none agree to that status is the persuading factor to
purchase clothing.
5. 87 respondents of age group 18-24 believes quality is the most persuading factor to
purchase the food products, whereas only 7 respondents consider attractive packaging
as the most persuading factor.
6. 78 respondents of age group 18-24, companies investing large amount of money for
celebrity endorsement are benefitted by increase in total revenue. 10 respondents of
age group 25-34 believes that celebrity endorsement do help in increase in total
revenue of the organization, whereas 1 respondent don’t believe that
7. 36 respondents falling in age group 18- 24 believe that mega stars like Shah Rukh
Khan, Amitabh Bachchan or Aishwarya Rai in an advertisement encourage them to
purchase the product or service, whereas 57 do not believe this. The age group 25- 34
has only 3 respondents considering these mega stars in an advertisement encouraging
to purchase the product or service, while 2 are not sure.
8. 19 respondents falling in age group 18- 24 believe that celebrities also use those
products which they themselves endorse, while 69 respondents from same age group
do not believe this. In age group 25- 34, there are no respondents who would believe
that celebrities also use those products which they themselves endorse, but have 10
[Bhanu Pratap Singh - IISWBM] Page 67
respondents who believe celebrities also use those products which they themselves
endorse.
39 respondents in age group 18- 24 are persuaded by films stars to purchase a
products, while 54 says famous personalities persuade them only 14 say they are
persuaded by cricketers. In other age group, only 1 respondent is persuaded by
cricketer, 7 are persuaded by famous personalities whereas none is persuaded by
politician.
5.1.2 On the basis of Gender
1. 47 males are motivated by latest models and trends to buy the product and only 11
males are motivated by fewer prices. 2 females are motivated by fewer prices whereas
majority, that 34 females are motivated by latest trends and models.
2. 17 females say the products promoted by celebrities do not have good quality,
whereas, 26 females believe that the product is only 50% consists of good quality. 27
males believe that the products promoted by celebrities are of not good quality and
only 9 males believe reverse.
3. 38 male respondents believe brand name acts a persuading factor to purchase motor
vehicle, whereas only 6 male consider it’s the celebrity who is endorsing the product.
4. 10 males think that cost is a persuading factor to purchase clothing, whereas 46 males
think it the brand name which persuades them to purchase clothing.
5. 57 male respondents consider quality as the most persuading factor to buy food
products. 40 females consider quality as the most persuading factor to purchase food
products whereas, only 3 females consider that celebrity persuades them to purchase
food products.
6. 54 males say yes when asked if they believe that celebrity endorsement help in
increasing revenue of organization, whereas 15 say no. 34 females say yes to the same
question whereas, 7 females say no.
7. 26 male respondents believe mega stars like Shah Rukh Khan, Amitabh Bachchan or
Aishwarya Rai in an advertisement encourage them to purchase the product or
service, while 36 males say no to it. 13 females are also encouraged by the same.
8. 12 male respondents and 7 female respondents believe celebrities also use those
products which they themselves endorse whereas 47 male and 32 female respondents
do not believe the same
9. 21 males and 22 female respondents are persuaded by film stars to buy products,
whereas 36 males and 25 females are persuaded by personalities. Cricketers are able
[Bhanu Pratap Singh - IISWBM] Page 68
to persuade 12 males and only 3 females, whereas politicians persuade only 3 males
and 1 female respondent.
10. 10 males say they value the price of the product the most when they purchase a
product, while only one male say its celebrity endorsement which they value. 36
females consider price of the product which they value the most, whereas only 2
females think they value celebrity endorsement.
11. 63 males say celebrity endorsement help in brand promotion while 7 males say it does
not help. 37 females say celebrity endorsement help in brand promotion.
12. 49 males and 34 females say that if celebrity’s image defer, the company gets
affected, whereas 18 males say that company is not affected if celebrity’s image
defers.
13. 51 male and 39 female respondents television is the means of advertisements which
persuades them the most. Only 3 male respondents believe its radio which persuade
them the most.
14. 33 males and 16 females believe that the reason for the companies to choose celebrity
endorsement for promoting their products is easy recognition, whereas, 4 males and 4
females think it is so because the companies cannot think of any new idea.
5.1.3 On the basis of Ratings given to Celebrity Endorsers
1. 5.5% of the total respondents rate Aishwarya Rai an excellent brand endorser, 46.7%
consider her an average brand endorser, while 27.6% rate her as a poor brand
endorser.
2. 5.5% of the total respondents consider Hrithik Roshan for Coca Cola and Hero Honda
Karizma as an excellent brand endorser. 15.7% consider him as a good brand
endorser, whereas 45.7% consider him an average brand endorser.
3. 21.3% of total respondents who rate Sushmita Sen for Olay Creams as good brand
endorser. 38.6% rate her as an average brand endorser whereas only 3.9% rate her as
excellent brand endorser.
4. Juhi Chawla is considered as an average brand endorser for Kurkure by 48% of total
respondents whereas only 9.4% of the total respondents consider as an excellent brand
endorser for Kurkure. 13.4% and 25.2% of the total respondents believe she is good
and poor brand endorser respetively.
5. 29.9% of the total respondents consider Amitabh Bachchan as poor brand endorser for
Cadbury choclates whereas only 7.1% consider him as an excellent brand endorser for
the same.
[Bhanu Pratap Singh - IISWBM] Page 69
6. equal percent of respondents consider Shah Rukh Khan as an average and poor brand
endorser for Airtel and Pepsi. Only 1.6% of the total respondents consider him as
excellent brand endorser, whereas 7.9% of total respondents consider him as good for
the same.
7. Saif Ali Khan comes out to be average brand endorser for Lays and Chevrolet as said
by 33.9% of total respondents, whereas only 3.9% of total respondents consider him
to be an excellent brand endorser for the same.
8. 11.8% of the total respondents believe that Amir Khan is a good brand endorser for
Tata Sky and Samsung, whereas 37% of the total respondents consider him as an
average brand endorser for the same brands.
9. 30.7% of the respondents consider Katrina Kaif as an average brand endorser for
Slice, whereas 11.8% of the respondents say she is an excellent brand endorser.
12.6% of total respondents believe she is a good brand endorser for Slice.
10. 43.3% of the total respondents say that John Abraham is an average brand endorser
for Garnier and Castrol, whereas 21.3% of total respondents consider him good. 7.9%
of the total respondents believe that he is an excellent brand endorser for these two
brands.
5.2 DIRECTIONS FOR FUTURE STUDY
There can be many ways in which this study can be expanded in future. Some of the ways
could be listed as follows:
1. The study could also be extended to a comparison of perception regarding celebrity
endorsement at Kolkata and other cities.
[Bhanu Pratap Singh - IISWBM] Page 70
2. More respondents could be targeted in future which will help in increasing the sample
size.
3. Future studies can be carried out to compare the celebrities endorsing in India and in
foreign countries.
[Bhanu Pratap Singh - IISWBM] Page 71
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QUESTIONNAIRE
Dear respondents,This questionnaire carries data on which study will take place on the topic “Celebrity endorsement affecting consumer’s attitude toward the advertisement and purchase intension for a product”. Your view will be of immense value and through this I can find the change in attitude by seeing advertisement.
Name:_____________________________________________________________________
Gender:___________________ Age______________ Occupation______________________
1. What are the motivating factors when you plan to buy mobiles or cars?(a) Discounts and offers [ ] (b) Fewer prices [ ](c) Latest models and trends [ ] (d) Celebrity endorsing the product [ ]
2. Do you believe products specifically advertised by the celebrities are of good quality?Yes [ ] No [ ] 50% [ ] Not sure [ ]
3. What is the most persuading factor to purchase the following products?
(a) Motor vehicle?Brand Name [ ] Celebrity [ ] Luxury [ ] Self Esteem [ ]
(b) ClothingBrand Name [ ] Celebrity [ ] Status [ ] Cost [ ]
(c) Food ProductsCelebrity [ ] Attractive Package [ ]Quality [ ] Brand Name [ ]
4. Companies are investing large amounts of money for using celebrities; do you think its helping them to increase their total revenue?Yes [ ] No [ ] Don’t know [ ]
5. Does the presence of mega star like Shahrukh Khan, Amitabh Bacchan or Aishwariya Rai in an advertisement encourage you to purchase the product or service?Yes [ ] No [ ] Not sure [ ]
6. Do you believe the celebrities also use those products which they themselves endorse?Yes [ ] No [ ] Not sure [ ]
7. What type of celebrity endorsement persuades you personally to purchase products? Film star [ ] Famous personalities [ ]Cricketer [ ] Politician [ ]
8. Please rate the following celebrities as a brand endorser:-(a) Aishwariya Rai for L’OrealExcellent [ ] Good [ ] Average [ ]Poor [ ] Can’t [ ]
(b) Hritik Roshan for coca cola and hero honda karizma
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Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ](c) Sushmita Sen for Olay creams Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]
(d) Juhi Chawla for Kurkure-Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]
(e) Amitabh Bachan for Cadbury chocolates-Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]
(f) Shah Rukh Khan for Airtel and PepsiExcellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]
(g) Saif Ali Khan for Lays and Chevrolet Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]
(h) Aamir Khan for Tata Sky and SamsungExcellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]
(i) Katrina Kaif for slice Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]
(j) John Abraham for Garnier and Castrol Excellent [ ] Good [ ] Average [ ]Poor [ ] Can’t rate [ ]
9. What do you value the most when purchasing a product?Price of the product [ ] Celebrity endorsement [ ]Quality of the product [ ] Value for money [ ]
10. Does celebrity endorsement help in brand promotion?Yes [ ] No [ ] Not sure [ ]
11. Does it affect company if celebrity’s image defer?Yes [ ] No [ ] Not sure [ ]
12. What means of advertisements persuades you the most to purchase a product?Television [ ] Radio [ ] Newspaper [ ]Magazines [ ] Internet [ ]
13. What do you think is the reason for the companies to choose celebrity endorsement for promoting their products?Easy recognition of product [ ] Can’t generate new ideas [ ]
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to be able to increase sales and profit[ ] to compete strongly [ ]
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